A cleared business check shows an unfamiliar payee or amount

Compare the cleared-check image with the approved payment record, including the number, payee and amount. Save the front and back images where available through the bank's secure process. Preserve the invoice, approval, check-issue file and any mailing or delivery record. Do not overwrite the payee in the ledger to match an unexplained bank image.

The OCC describes check washing as alteration of legitimate checks, including changes to payee or amount. An unexplained difference needs prompt bank contact. It can also have another cause, such as an incorrectly selected image or an issue-record error, so document the observation without presenting an unverified conclusion as fact.

Contact the bank's verified fraud or treasury support team. Give it the check reference, clearing date, amount and the specific difference observed. Ask for the required claim forms, supporting evidence and applicable deadlines under the account agreement and law. Business-account rights and notification requirements should be checked for the actual account; do not assume a general consumer timeline applies.

Record the case number and follow-up responsibility. If other issued checks could be affected, discuss available protective measures with the bank and authorized finance lead. Review recent check activity for related anomalies while preserving the normal evidence trail. Include checks from the same mailing batch when the available evidence suggests that delivery was compromised.

A provisional credit, if provided, should remain identified as provisional until the bank confirms its status. Keep the disputed debit and any credit linked in the accounting records. Ask the accountant to assess the correct treatment while the claim is unresolved.

Contact the supplier through a known channel and ask whether it received or deposited the original check. Reconcile its response with the bank evidence. If the supplier remains unpaid, have the commercial and accounting owners assess the obligation and the appropriate replacement process.

Avoid issuing another check before the original item's status and the bank's instructions are understood. A replacement should carry a new reference linked to the original bill and incident. The ledger needs to show the legitimate obligation, the disputed payment and the supported treatment of any replacement or recovery.

Keep customer or employee personal information out of a broadly shared incident log. Store the full check images and claim documents where only authorized people can access them, while giving the reconciliation reviewer the references needed to follow the case.

Inspect the issue-file submission, positive-pay exception decision and any failed alert. The FBI recommends reviewing check images, following up with payees and using positive pay where available. Determine which controls the company's bank actually offers and which were active for the disputed item.

If the problem involved mail custody, coordinate with security, the carrier or relevant authorities as appropriate. If the issue file was incomplete, correct the preparation and acknowledgment process. The control change should address the supported cause instead of assuming that one generic reminder will prevent every form of check fraud.

At each close, reconcile the original debit, replacement payment and any recovery. Record the remaining exposure and owner of the bank claim. Close the exception when the supplier balance, dispute outcome and ledger treatment can all be explained from the retained evidence.