Small businesses are a growing target for fraudsters using tactics like phishing emails, fake invoices and business email compromise to steal information and access accounts. By educating employees, strengthening security practices and using available fraud prevention tools, businesses can take steps to help protect their finances and information.
1. Educate Your Employees
Your employees are your first line of defense against fraud. Provide regular training on common scams, including phishing emails, business email compromise, impersonation scams and fraudulent payment requests.
Encourage employees to slow down and verify unexpected requests, especially those involving:
- Wire transfers or payments
- Changes to vendor payment information
- Requests for sensitive information
- Urgent requests from executives or trusted contacts
A well-informed team is one of the best ways to help identify and stop fraud attempts.
2. Strengthen Your Online Security
Protect your digital environment just as you would your physical business location. Simple security practices can help reduce your risk of unauthorized access.
Consider these steps:
- Use strong, unique passwords and update them regularly
- Enable multi-factor authentication whenever possible
- Keep computers, software and security programs updated
- Avoid accessing business accounts through unsecured Wi-Fi networks
- Limit employee access to only the systems and information they need
Taking small steps to improve security can make it more difficult for criminals to access your accounts.
3. Use Fraud Prevention Tools Offered by Your Financial Institution
Your financial institution can help you identify solutions designed to protect your business from unauthorized transactions. Talk with your banker about available services that may help reduce fraud risk. The right combination of tools can provide an additional layer of protection for your business.
4. Verify Unusual Requests and Act Quickly
Fraudsters often impersonate business owners, vendors, employees or financial institutions to trick businesses into sending money or sharing confidential information.
Before completing an unusual request:
- Verify payment instructions using a trusted phone number or contact method
- Be cautious of unexpected emails, links or attachments
- Confirm requests for urgent payments or account changes
- Watch for unusual account activity or login attempts
If you suspect fraud, contact your financial institution immediately. Quick action can help limit potential losses.
5. Understand Your Responsibilities and Have a Plan
Every business should have a plan for responding to suspected fraud. Know who to contact, what steps to take and how to report suspicious activity. Review your account agreements to understand the security measures required for your business and implement recommended safeguards to help protect your accounts and reduce your risk of loss. Regularly reviewing your fraud prevention practices can help ensure your business stays prepared as new threats emerge.
Fraud tactics continue to evolve, but businesses can take steps to stay prepared. By educating employees, strengthening security practices and partnering with your financial institution, you can help protect your business from fraud.
