Check fraud protection

“Commercial real estate is a check-heavy business,” said Rob Philpott, Commercial Term Lending Treasury Services Regional Manager at JPMorganChase. Checks remain the payment method most vulnerable to fraud with 65% of respondents reporting their organizations faced fraud attacks of this type, according to the 2024 AFP Payments Fraud and Control Survey.

Automating processes and switching to digital payments are critical to combatting check fraud, as is investing in treasury tools. “Automating payment solutions starts with reducing the number of checks written,” Philpott said. “Rather than mailing checks, multifamily operators can work with a bank that has secondary authentication to access third-party systems. That way, operators are logging into a secure system to send payments electronically.”

Treasury management tools can also offer secure platforms for residents to make payments, reducing the risk of data breaches and helping protect their personal information. Other tools can help reduce check fraud, too.

“Cashflow360^SM can print and send out a check on your behalf from a subaccount , which only holds the amount on that check,” said Philpott. “If somebody got into the mail, stole that check and took the information off the MICR line, they wouldn't get any of your account information. It protects the rest of your funds from being hacked.”

Likewise, Chase Connect® Positive Pay can help safeguard against check fraud. Positive Pay helps verify checks against issued check details, helping to ensure that only authorized checks are processed. 

Phishing and BEC prevention

Multifamily owners and operators can protect against phishing and BEC with multiple tools, including:

• Education and training: It’s important that employees know best practices for fighting fraud and stay up to date on the latest trends. “Regular training sessions can help employees recognize phishing attempts and scams,” Philpott said. “This includes avoiding clicking on suspicious links or providing sensitive information via email.”
• Secure banking platforms: Chase online banking platforms are equipped with multifactor authentication and encryption to protect against cyberthreats. Enforcing multifactor authentication via a key fob or app adds an additional layer of security, making it harder for fraudsters to access accounts. Likewise, implementing advanced email encryption and filtering solutions can help detect and block phishing emails.
• Regular backups: Multifamily operators should regularly back up their critical systems, which can help you restore data without paying the ransom if a ransomware attack occurs. At least one set of backups should be offline and inaccessible from the main network. 
• Access controls: Part of protecting your data is limiting entitlements for those who can access accounts. “For example, you may have an accountant that comes in and handles your books,” Philpott said. “With digital treasury tools, you can provide the accountant with access, but not allow them to move any funds, which can help prevent any fraudulent activity.”

Multifamily technology and tools for physical security

Physical security is a major concern for multifamily operators and residents alike. It includes resident safety concerns and risks related to unauthorized access and property damage. 

“In terms of what properties are most vulnerable to physical security issues—all locations,” Philpott said. “You have fraudsters that are purposefully going to areas that you might think are safer because people aren’t thinking about security measures as much.” 

While specific measures depend on the property’s location and size, all multifamily operators should:

• Prepare for emergencies: It’s important to have multifamily technology, systems and plans in place to respond to emergencies, such as fires and natural disasters. There may be other necessary preparations based on the property’s size and location. For example, operators in areas prone to hurricanes and flooding may install storm shutters or flood vents.
• Prioritize resident safety concerns: Keep an open line of communication with residents to learn more about their safety concerns. For example, your residents may be concerned about package theft and want well-lit common areas or a private package delivery space. 
• Use surveillance and monitoring systems: Surveillance systems allow you to monitor your property in real time and alert management to potential security breaches or suspicious activities. If an incident does occur, the video footage may serve as evidence.
• Control who can access the property: To help ensure apartment safety, make sure only necessary parties can access your physical property. Multifamily technology, specifically proptech, is key to smart access control. Keyless entry, smart locks, security gates and visitor management systems help control who can access the property. 
  
• Conduct regular security audits: Maintaining your property’s physical security is an ongoing process. That’s why it’s important to regularly assess your property’s security systems to help identify vulnerabilities and keep protocols are up to date.

The bottom line: Apartment owners and operators can keep their buildings safer by implementing multifamily technology focused on data security and physical security, including surveillance and monitoring systems, secure banking platforms, access controls and fraud protection tools.