What typically happens in this type of fraud is one of two things:
1. The con artist will procure a certified copy of the company's documents from the government office where they were filed. He will then dummy up a corporate resolution and meeting minutes, naming whomever he pleases as authorized signatories. (Usually a name that he has fake IDs to match.) One of the most famous examples of this ploy was this one: John Ruffo case
2. The second variation is that an employee of ABC Company, Inc. will go to a financial institution and pretend to be the owner of a sole proprietorship called ABC Company. Sole proprietorships, in most states, do not require any legal filing for formation, so there is little documentation to obtain or verify. The crooked employee will then deposit checks stolen from his employer into the fraudulent new sole proprietorship account.
A third variation will involve a company with a name like Able, Bunch, Crud, Inc. Since customers will frequently abbreviate a long name, the company will often be sent checks made payable to ABC, Inc. The crooked employee will then form a corporation (or fake a sole proprietorship) named ABC, and will deposit the stolen checks into that account.
The entity in the best position to prevent this fraud is the employer with proper screening practices for hiring, effective monitoring procedures, and good internal controls.