This blog is for educational purposes only, not an offer of credit or advertisement for current loan terms. It does not provide legal advice. Refer to our loan web pages or consult professional advisors for specific information.
Types of Fraud
Financial fraud is a big topic for business owners, and you might already have some understanding of checks and ACH fraud. However, they are not the only types of fraud you might face. Additional fraud types could include:
- Employee fraud: While you strive to hire only the best employees, many businesses find themselves victims of employee fraud. This is typically done through the theft of cash or goods and services.
- Cybercrime: Cybercrime is a growing threat to businesses, particularly with the rise of e-commerce and digital platforms. If you have an online presence, you need to guard against it.
- Credit card fraud: If you are taking credit cards online or over the phone, you might find yourself a victim of CNP (card not present) fraud. You also need to be mindful of unauthorized transactions on all your company credit cards.
- Phishing scams: These scams involve fraudulent emails and websites that trick people into revealing personal information. This information can include items such as login credentials, financial details and any other personal information. Fraud can hit almost any business.
Protective Measures
The consequences of not protecting yourself against fraud can be devastating, ranging from significant financial losses and reputational damage to the complete disruption of your operations. Don't wait until you're a victim. Proactive prevention is the best defense. Here are some crucial steps you can take to safeguard your business finances:
- Positive pay: This is a service that allows businesses to review and authorize checks and ACH transactions before they are processed. It can help you avoid fraudulent payments.
- Employee training and education: You should educate and train your employees to recognize common fraud schemes and red flags.
- Strong internal controls: Internal controls and procedures can help prevent and detect fraud. You should consider separating duties, requiring multiple authorizations for transactions, and conducting regular audits.
Proactive fraud prevention measures can stop fraud before it starts.
Cybersecurity Best Practices
Strengthen your defenses and safeguard your business by regularly reviewing your cybersecurity measures. Here's what to consider:
- Use strong passwords and multi-factor authentication.
- Keep software and security systems updated.
- Be cautious about clicking links or opening attachments from unknown senders.
- Regularly back up important data to a secure server.
- Secure wireless networks.
You and your employees should be vigilant when online and off. Regular reminders about best practices help protect your business by ensuring employees are following them..
Credit Card Security
In the modern world, credit cards are the dominant form of payment, making it likely that your business, like most, relies heavily on credit card transactions. Here are a few credit card security tips:
- Use Mobile wallet.
- Use chip-enabled card readers.
- Be vigilant when making online purchases with your personal and business cards.
- Monitor your personal and business card statements for suspicious activity.
You can protect your company from fraud when accepting and using credit cards with a little thought and care.
Available Services
There are services available to help your business navigate fraud. You may find that your bank or credit union, like MIDFLORIDA Credit Union, can help with specific fraud protection services, such as fraud monitoring and alerts. If there are questions about a transaction, they can alert you.
Choose MIDFLORIDA Credit Union as Your Partner
MIDFLORIDA Credit Union offers services that help protect you and your business from fraud. Contact us today to learn more.
