Electronic Payments Stop Check Fraud—But They Don’t Stop Fraud

All fraud prevention experts, from Frank Abagnale to Professor Clayton Gillette of New York University, agree that electronic payments are the best defense against fraud. It’s much more difficult to change or intercept the electronic files that generate payment. It may be more difficult, but not impossible. An employee of a company or of the bank processing a payment can conceivably gain access to the electronic files at some point in the process. There are two types of electronic payments.…