After spending the tremendously challenging year 2020, both large and small business organizations have become optimistic about reviving their ability to bounce back in 2021, as per a survey by Capital One Small Business Confidence. Almost the entire 2020 was focused on the spread of the deadly pandemic caused by the COVID-19 virus. For businesses to get back on track in 2021, they have to steer clear from additional risks like a fraud.
A survey conducted by Funds Back, a fraud protection firm, revealed that 92% of the respondents anticipate some kind of business fraud to hike in the next 12 months. In case you’re a victim of business fraud of any type, you should instantly report to the FTC (Federal Trade Commission). Nevertheless, you need a proactive approach to fight fraud. Read on to know how to safeguard your business from fraud.
Banking and Payment Fraud
Unsanctioned transactions, bounced checks, false requests for returns/refunds, and stolen or lost stocks are examples of payment fraud. The majority of the hackers make credit card merchant accounts and credit card users their victims by leveraging the numbers of stolen cards. Here are few ways of preventing payment and banking fraud:
- Stay aware of the latest trends of banking fraud
- Encrypt all your payment transactions
- Join hands with a secure payment processing company
- Don’t give ACH or credit card information over phone or email
- Limit the number of people with whom you share your banking details
Cyberfraud
For online businesses that share a digital presence, it is critical to devise a cybersecurity plan and follow that to the ‘T’. The Federal Communications Commission or the FCC says that identity theft has reportedly been deemed as the most common fraud and it has surpassed physical theft. Here are ways to keep cyberfraud at bay.
- Give proper training to your employees
- Have security procedures like safeguarding customer data, using strong passwords
- Keep all devices updated to the latest software
- Use firewalls and antivirus software
- Design an encryption plan for mobile devices (for the remote employees)
- Back up all vital business details on the cloud
- Work with reputable credit card processors and banks
- Secure WiFi networks with password and SSID protection
Employee Fraud
For small and large businesses, employee fraud is not only real but also a costly risk, more so in the sluggish economy. If you have to learn to avoid any kind of employee fraud, here are few tips:
- Adopt a paperless procedure as checks and paper invoices pose a security risk.
- Digitized payments reduce the chance of theft
- Incorporate payment controls through fraud preventive solutions like Funds Back
- Automate the work processes by setting reminders and having an audit trail
- Eliminate both incoming and outgoing checks
- Boost the total number of internal audits that you conduct
Choosing a fraud prevention system – Few tips
While it is recommended that you go through funds back ltd. reviews before hiring them, here are few tips to choose a worthy fraud and risk management company.
- Ask the number of rules that can be set up in their system on an average. Between 8 and 20, which is the right number for your small business?
- Choose a company that can offer you the ability to create your custom rules as per your behaviors and needs
- The fraud prevention software should let you create, apply and again reconfigure rules within an easy-to-use interface
- Choose a fraud management solution that uses the most current cutting-edge technology that promises quantitative and qualitative results
- Choose a solution with the latest analytics to associate uncommon data and uncover hidden patterns of behavior
- The supplier should offer you aggregate data for straightforward decision-making
- The company should show you tried and tested results
So, if you’re still looking for a worthy solution to combat business fraud, meet your needs, and handle risk, seek the help of Funds Back to get the best solutions.
