Every business depends on trusted vendors.
Whether you’re paying suppliers, contractors, service providers, or professional advisors, those relationships keep your business operating every day. Because payments become routine, it’s easy to assume every request is legitimate.
Unfortunately, criminals understand that routine creates opportunity.
One of the most common business fraud schemes begins with a simple request to update payment information or change where future payments are sent. If that request isn’t verified, the next payment could be deposited into a criminal’s account instead of your vendor’s.
The strongest businesses don’t verify vendors because they expect fraud.
They verify vendors because it’s part of good financial management.
Verification Begins During Vendor Onboarding
The best time to establish strong verification procedures is at the beginning of the relationship.
When adding a new vendor, collect and document information such as:
- Legal business name.
- Primary business address.
- Main phone number.
- Primary contact.
- Approved email address.
- Banking information for electronic payments.
Just as important, determine who within the vendor’s organization is authorized to request future payment or banking changes.
Establishing verified information at the start makes future verification much easier.
Treat Payment Changes as High-Risk Requests
Businesses change banks from time to time.
That alone isn’t unusual.
What matters is how the change is verified.
Before updating ACH or wire instructions:
- Contact the vendor using a trusted phone number already on file.
- Speak with a known contact whenever possible.
- Confirm the new banking information before making changes.
- Follow your organization’s approval procedures.
Never rely solely on the contact information included in the request.
Independent verification remains one of the most effective ways to prevent payment fraud.
Review Vendor Information Regularly
Vendor records shouldn’t be treated as “set it and forget it.”
Over time:
- Employees retire or change roles.
- Companies relocate.
- Banking relationships change.
- Businesses merge or are acquired.
- Contact information becomes outdated.
Periodic reviews help ensure your records remain accurate and reduce the likelihood of processing payments based on outdated information.
For many businesses, an annual vendor review is a practical way to confirm that critical information is still current.
Documentation Builds Consistency
Verification is most effective when it’s documented.
Consider maintaining records that show:
- When vendor information was verified.
- Who completed the verification.
- How banking changes were confirmed.
- When records were updated.
- Who approved significant changes.
Documentation provides consistency, supports internal reviews, and creates confidence that important procedures were followed.
Build Vendor Verification Into Your Process
The strongest organizations don’t leave vendor verification to individual judgment.
Instead, they build it into their workflow.
For example:
- New vendors are verified before they’re added to the accounting system.
- Banking changes require independent confirmation.
- Significant updates require management approval.
- Documentation is retained for future reference.
When verification becomes part of the process, employees don’t have to decide whether a request “looks suspicious.”
They simply follow the same procedure every time.
Vendor Relationships Are Built on Trust
Verification shouldn’t be viewed as questioning a vendor’s integrity.
In fact, many vendors appreciate businesses that protect payment information and maintain strong financial controls.
A brief phone call to confirm banking instructions or verify an unusual request demonstrates professionalism - not distrust.
Strong verification practices help protect both organizations.
Verification Supports Better Business Decisions
Vendor verification does more than reduce fraud.
It improves data accuracy.
It strengthens financial controls.
It supports consistent payment processes.
And it gives employees confidence that they’re making decisions based on verified information.
Those benefits extend well beyond fraud prevention.
They contribute to a healthier, more efficient business.
Remember
Every payment begins with trust.
The goal of vendor verification isn’t to eliminate that trust - it’s to support it.
By establishing good onboarding procedures, independently verifying payment changes, reviewing vendor information regularly, documenting important updates, and following consistent processes, businesses create stronger relationships while reducing unnecessary risk.
Protecting every payment begins long before the payment is sent.
It begins with knowing exactly who you’re paying.
Need Help?
First Bank of Berne works with businesses of all sizes to strengthen payment processes and reduce fraud risk through practical guidance and treasury management solutions.
Whether you’re reviewing vendor procedures or looking for ways to enhance payment security, we’re here to help you build confidence into every transaction.