How to Protect Your Business From Fraud

Image Credit 

Is your business protected from fraud and cybercrime? If not, you need to think about it if you want to maintain the integrity of your brand in the industry and your carefully curated reputation. There is no silver bullet in preventing fraud, but there are lots you do to minimize the threats. 

Protect Your Bank Accounts 

If you are a business owner, you should have separate accounts for your business and your personal finances; not only does this help to organize your business finances and your tax return, but it can protect your business from fraud. If one of your bank accounts is compromised, you can always transfer funds to the other account at the click of a button, so set them up. 

When you are choosing banks and bank accounts for your business and personal transactions, spend some time looking into the type of security they have in place. Some bank accounts are more secure than others and might be a better fit for your business. Additionally, consider whether you want two accounts with the same bank or you want different banks and bank accounts.  

Protect Your Computer Systems 

If you run a computer network in your business – however small – you need to seriously consider the threat from cybercrime. In recent years, cybercrime has accelerated and become more and more sophisticated. Nowadays, cybercriminals work as significant international organizations of hackers and managers who are experts in cracking databases. So make sure you are secure. 

The best way to secure your network is to partner with a managed service provider who can set up your security infrastructure and test it regularly for the latest updates and protocols. However, an MSP might only suit a business of a certain size, so if you only run a small network, you need a firewall and some high-quality anti-virus software to protect your company and customer data.     

Check Employees 

Small and expanding businesses need a pool of reliable employees to support business growth, but you also need to protect the integrity of the business internally. In most cases, businesses hiring new staff use references to find out about where individuals have worked previously, what their skillsets are and whether they can add value to the company. But consider security as well. 

Along with references, consider performing a further background check on your prospects to find out more about their credentials and to safeguard your business. If you don’t have the capacity or the expertise to carry out reference checks yourself, you can pay for an external service to background check employees on your behalf. It costs a little extra but helps secure a business.  

Security Infrastructure 

Cyber security is one thing, but you also have to consider the security of the physical infrastructure of your business. How do your employees enter the building, and what measures do you have in place for their desks? Additionally, you have to consider security training for your employees so they can spot any signs of fraud in the business or signs of cyber-attacks. 

Most businesses reduce fraud with reduce card-not-present fraud and have a secure door entry system with swipe cards – this replaces the older model of a receptionist and security personnel. At the desk, employees should follow security protocol at all times; they aren’t allowed their smartphones at the desk and need to lock computers when they leave. Cybersecurity training is also recommended.  

Insurance Policies 

No business wants to suffer the costs and fallout of a cyber attack or another form of fraud; not only does it mean that valuable data is lost or stolen, but it damages the reputation of the company in the eyes of the public and leads to damages and recriminations. For this reason, you need to have the right insurance policies in place to guard against the worst outcomes.  

While insurance policies cannot stop attacks and fraud from happening, they can cover a lot of the damages that are incurred from the attack. Suitable theft insurance should be enough to help your business return to normal operations as quickly as possible; it will also cover any losses and reimburse creditors if you need to lean on them to keep your business operational.

Final Thoughts 

While fraud prevention might not be at the top of your list when setting up a business, it probably should be; that’s because fraud can undo all of the good work that it took to grow your business and establish your reputation in an industry. If you operate a network, it’s especially important to think about fraud prevention because cyberattacks are a very serious threat.  

0 Responses to “How to Protect Your Business From Fraud”

  • No Comments

Leave a Reply

Leave a Reply

Your email address will not be published. Required fields are marked *