Unfortunately, many in the property management field have already experienced payment fraud, and the number of victims continues to grow. As fraud tactics evolve, it becomes increasingly difficult for communities and contractors to stay ahead of the threats. (This Reddit post is an all-too-common example.)
So what can you and your association board do to reduce the risk of fraud and protect your investments, income, and budget?
- Ditch Paper Checks–Go Digital!
Paper checks remain the number one target for fraud. Switching to secure digital payments like ACH is a critical first step. MyPropertyBilling clients use VendorShield, which enables digital payments that are trackable and secure without any extra effort by the board or property manager. This eliminates the need for manual check handling and reduces the risk of interception or forgery.
- Avoid Mailing Checks
Mailed checks are easily intercepted and altered. By using MyPropertyBilling’s VendorShield and its digital payment system, you’ll remove this vulnerability entirely: no more envelopes, stamps, or risk of theft.
- Ensure Payments Are Secure
Every payment made by MyPropertyBilling and through the apps and software platforms we provide is processed using secure, auditable methods. This transparency is something paper checks simply can’t offer.
- Use Secure Approval Channels
Approving payments via email or text is risky. MyPropertyBilling uses role-based, secure platforms for approvals, protecting your board from impersonation and social engineering scams. These apps and online dashboard also let board members see the status of each invoice and payment, providing full financial visibility.
- Implement Multi-Level Approvals
Fraud often occurs when there’s a lack of oversight. MyPropertyBilling provides mobile apps and software that enforces multi-approver workflows with a tracked audit trail, ensuring that no payment is made without proper authorization.
- Reconcile Frequently
Do you reconcile your bank statements against issued payments regularly? MyPropertyBilling makes this easy by doing it for you. Financial reports are generated and posted online and provide real-time visibility into payment activity by all board members. This way, fraud can be detected early and easily, and respond to suspicious transactions can be done swiftly, keeping loss to a minimum.
- Keep Vendor Records Up to Date
Outdated or incorrect vendor information is a common entry point for fraud. MyPropertyBilling, through VendorShield, ensures that vendor banking details are regularly reviewed and verified, reducing the risk of payments being redirected to fraudulent accounts.
- Get a Third-Party Review
Sometimes, an outside perspective is the best way to uncover hidden vulnerabilities. Not only does MyPropertyBilling staff follow all GAAP procedures, they can help clients arrange an outside audit or review to ensure their accounts payable processes follows best practices and to strengthen internal controls.
Bottom line: fraud prevention in property management isn’t just about reacting—it’s about building smarter systems. MyPropertyBilling, with it’s state of the art technology and software, helps property managers and boards proactively reduce risk, streamline payments, and protect community finances.