CosmoLex Legal Software Now Supports Positive Pay Check Fraud Protection

New feature protects law firms against altered or counterfeit checks
 
Sept. 24, 2014 - PRLog -- NORTH BRUNSWICK, N.J.  – CosmoLex 2.0, the latest release of the cloud-based law office software, has added support for Positive Pay, a customer authorization system that greatly reduces the instance of check fraud.

The Association of Certified Fraud Examiners estimates that businesses lost over $3 billion to check fraud in 2014 alone. Positive Pay is a system used by most banks to greatly reduce check fraud by implementing customer authorization of each check. Customers send the bank a list of all checks issued. When a check comes in for payment, the bank compares the check number and amount to the list. If they do not agree, the check is rejected. The system makes it nearly impossible to alter or forge checks from participating companies.

Check fraud can be especially devastating to practices in certain areas of law, such as personal injury and real estate settlements. Even a solo firm could have over $1 million in a trust account, so a potential loss could be enormous, and the large number of checks issued every month means that multiple parties are involved, further increasing fraud potential.

A Positive Pay chain has three components: the accounting software, the bank and a third-party application that converts the accounting software information to a format accepted by the bank. Since there is no standard Positive Pay format, each bank has its own requirements (thus the need for a third-party translation application).

CosmoLex 2.0 has added Positive Pay support by making it easy for a law firm to generate a report listing all uncleared transactions. This report is imported into a third-party application that converts it to the proper format and sends it to the practice's bank. Positive Pay support is automatically available to all CosmoLex subscribers at no additional cost.

"Unfortunately, many law firms don't have any kind of check fraud protection because they worry about the workflow and cost involved," said Rick Kabra, CEO of CosmoLex. "CosmoLex streamlines the Positive Pay process, making it take just a few minutes per day."

CosmoLex is a cloud-based legal practice management system with full trust account management and is used by hundreds of law firms across the country. Other features included in the .0 release are team calendars, task lists, appointment setting and simple client and matter import from other legal applications.

About CosmoLex

CosmoLex (www.cosmolex.com) is an industry leader in cloud-based law firm management software. The CosmoLex team brings together experts who have been catering to the specialized technology needs of small to medium law firms since 2006 in order to create a new generation of law office software. CosmoLex integrates time tracking, billing and trust accounting functions, allowing lawyers to focus on the practice of law.
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Industry:Legal
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