Every company is at risk of being affected by commercial fraud. Don’t worry, we’re sharing prevention methods that can help protect you, your business, and clients in time for Fraud Prevention Month.
March is Fraud Prevention Month, that’s why we want to help educate you on how to protect your business and clients against commercial fraud. Take the time to educate yourself on the risks of fraud and ways to protect your business.
Four Vital Business Fraud Prevention Tips
#1 Education & Corporate Responsibility
From our perspective, the most important part of fraud prevention is education and understanding that the responsibility starts with business ownership/executives. Establishing fraud policies and procedures. Following that, you need to have the proper checklist in place to avoid any issues. For example, weekly bank account reviews, employee training on fraud identification, and financial audits to name a few.
Education will help ensure everyone within your company understands what fraud looks like, that way they can identify potential issues quickly. The preventative measures your business makes doesn’t just protect your business; it can also safeguard your clients against fraud. The information you provide your clients can help them better protect their own accounts. Fraud prevention is best when everyone is working together, so help spread awareness to your clients this month.
#2 Device Regulation
Considering the times, many companies are permitting employees to use their own devices to access business databases and accounts. Whether they are using a smartphone, laptop, or tablet, and with the increase in working at home this past year, personal devices are used more often.
Regulating devices that are used by employees is crucial in protecting both your business and clients’ information. You run a high risk of fraud when using personal devices for work, especially if an employee’s personal device is ever stolen.
#3 Cyber Security
Cyber-attacks have emerged as one of the most significant threats facing businesses of all sizes. Sadly, according to The Globe and Mail, more than half of small to mid-sized businesses have experienced a data breach and staggeringly over 75% of them could not regain their data.
Did you know that phishing is considered the most common cyber threat to businesses when it comes to commercial fraud? Phishing is when someone is contacted (through email, phone, texts, etc.) by someone who seems to be a legitimate source, but they are actually luring individuals into providing sensitive data to them, including personal identification, banking details, or passwords. Being aware of this issue and educating your employees and clients of this scheme is very important and can help to prevent fraud.
#4 Knowing Your Business’s Cyber Risk Exposure Score
When it comes to fraud prevention for your business, a great place to start is to figure out your company’s cyber risk exposure score. Once you have your score, you will be better able to educate yourself and protect your business with cyber liability insurance.