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Relyco, a client of BankProv’s since 2013, is a family-owned business that has been a trusted provider of financial documents and business solutions since 1989. Originally specializing in checks, envelopes, and tax forms, the company has evolved into two divisions—one dedicated to synthetic paper and the other focused on traditional financial products. Relyco has played a crucial role in the financial industry, contributing to the ANSI Committee in setting check standards in the U.S. and providing businesses with secure and reliable check processing solutions.
Despite their deep expertise in check security, Relyco encountered a costly lesson when a small, rarely used business account became the target of fraud. Fraudsters wrote numerous counterfeit checks off the account, exploiting common scam tactics, such as fake work-from-home schemes . While the account held only $5,000, the incident quickly became a major operational burden, requiring significant time and effort to resolve.
Dennis Veilleux, Relyco’s Controller, who joined Relyco in March 2022, arrived at the tail end of the fraud incident, which involved a well-known big bank. He recalled spending an excessive amount of time working to resolve the fraud case. Ultimately, only about half of the funds were recovered.
Following this incident, Relyco committed to implementing Positive Pay across all their accounts. Positive Pay, a fraud prevention tool, ensures that only pre-authorized checks are processed by the bank, significantly reducing the risk of fraudulent transactions. The company now educates its clients—from Fortune 100 firms to small property management businesses—on the importance of Positive Pay in preventing check fraud.
In addition to Positive Pay, Relyco has developed a rigorous internal review process. On check run days, the company follows a meticulous approval and verification procedure:
This extra level of diligence ensures that not only are fraudulent activities mitigated, but human errors—such as misplaced checks or postal delivery mishaps—are also minimized.
“We’ve always preached Positive Pay to our clients, but after experiencing fraud firsthand, we made it a policy to have it on every account,” said Bruce Steinberg, CEO of Relyco. “It’s a small investment that can prevent major financial and operational headaches.”
The company’s approach to fraud prevention extends well beyond traditional check Positive Pay, incorporating ACH Positive Pay as an additional safeguard. By implementing multiple layers of security, they’ve strengthened control over outgoing payments, including:
These proactive measures work together to create a robust defense, significantly mitigating the risk of fraud.
As fraud and financial crime continue to grow globally, Relyco’s approach is timely. According to Nasdaq’s 2024 Global Financial Crime Report, more than $3.1 trillion in illicit funds flowed through the global financial system in 2023. This includes billions of dollars linked to drug trafficking, human trafficking, and terrorism. Additionally, nearly $500 billion in losses were attributed to fraud scams and bank fraud schemes. The report underscores the growing threat businesses face and highlights how technology will play an increasingly important role in mitigating these risks.
Since implementing Positive Pay, Relyco has significantly reduced its exposure to fraud and operational disruptions.
“In the long run, Positive Pay makes everything more efficient. We no longer waste time trying to recover lost funds or resolve fraudulent transactions,” said Veilleux. “It gives us confidence that our accounts are protected, and our payments are secure.”
Relyco has found a trusted partner in BankProv, utilizing their Positive Pay and cash management services to secure their financial operations.
“The addition of the money market account about 15 months ago was another great security measure. If the money isn’t in the primary account, it can’t be easily taken out,” Veilleux added. “BankProv’s security tools and account monitoring features provide us with the confidence we need to manage our finances securely.”
The experience of Relyco highlights the critical importance of fraud prevention measures in business banking. While the company has long been an advocate for check security, firsthand experience with fraud reinforced the need for comprehensive protective measures. By implementing Positive Pay, strengthening internal controls, and partnering with BankProv, Relyco has successfully safeguarded its financial transactions—ensuring peace of mind and operational efficiency for the long term.
To learn how BankProv can help safeguard your business against fraud and improve financial security, contact us today.
