Wirecard, one of the world’s largest financial services companies, shocked the business world in June 2020 when they announced that they couldn’t account for more than $2 billion in assets.
In other words, the German company had been victimised by fraud to the point of insolvency. Fraud can bring down a global behemoth like Wirecard, and it can bring down your small business as well.
Fortunately, improving your small business’s security and preventing fraud is a much easier task than fraud-proofing a multibillion-dollar corporation.
Continue reading to learn about the five steps you can take right now to safeguard your small business from fraud.
Invest in anti-fraud software.
Payment fraud is one of the most common types of fraud in the United States. This is most common when customers try to pay for goods or services with fake checks or bills.
QuickBooks, fortunately, has a number of tools that you can use to ensure that all checks you receive as a business are secure and safe.
Regularly conduct audits
The weakest link in a chain determines its overall strength. Even if you have the best security software in the world, you can still be a victim of fraud if your entire business output isn’t in tip-top shape.
Conduct regular audits of all of your financial processes to strengthen your weakest link. Look for areas where procedures could be simplified or made more secure. Check out government websites for the latest scams and frauds to make sure your company isn’t a target.
Make use of passwords.
The number of people who use devices that aren’t password protected is alarming. Hackers and fraudsters could use your private, sensitive data on your mobile device, tablet, or computer to defraud you of money.
You’re effectively leaving the front door wide open to cyber criminals if you don’t have a password on them or if you’re using a weak password like your cat’s name or your favorite sports team.
Enforce a password policy across all of your small business’s devices, and make sure they’re updated on a regular basis.
You’re unlikely to be an expert on the subject of online fraud and security unless your small business is focused on cybersecurity. That’s fine. It’s not acceptable, however, to believe that you can wing it when it comes to cybersecurity.
If you have a website that is used for transactions or simply as a place for customers to share information with you, cybersecurity should be a top priority. You can’t do it by watching a few YouTube videos and signing up for a Square Space account.
Paying an expert company to look after your website and online security will save you money in the long run.
Authentication with two factors
We’re not talking about those annoying websites that send you a code every time you try to log in; instead, we’re talking about good ol’ two-factor authentication.
To reduce the chances of one person falling victim to a fraudster, have at least two staff members sign off on every financial transaction, both outgoing and incoming. Check the bills yourself and have a colleague double-check them when a client pays with large cash denominations.
When a supplier needs to be paid, have your employees come to you for approval before the funds are transferred. It may appear to be an additional layer of bureaucracy, but it is actually an additional layer of security.