Protect your small business accounts from fraud
Take steps to protect your hard work and know what to do if fraud occurs
You work hard for every dollar your business earns, but business accounts aren’t protected from fraud in the same way your personal accounts are. Every year, more than $5 trillion is lost globally to fraud.1
For small businesses, fraud can be an even bigger concern. The median loss for companies with fewer than 100 employees is $141,000, which can represent a significant portion of your company’s budget and revenue.2 Staying informed and vigilant can help you protect your assets.
Scammers are persistent and imaginative
Fraud takes many forms. From phishing and fake checks to ransomware and information theft, you may be at risk in ways you haven’t considered. Use the following tips to strengthen your company’s defenses.
Train your staff.
A dedicated person or team can be invaluable to keep the entire staff, including trusted vendors, up to date about fraud prevention, best practices, warning signs, and ways to respond to suspected fraud.2 You may also consider inviting external experts to train your team on identifying and addressing fraud.
Protect your digital space.
Take precautions including backing up files, enforcing password complexity requirements, limiting unsuccessful login attempts, and encrypting communications. Many digital tools make it easy to enable multi-factor authentication as an additional security measure.
Don't be a stranger.
Scammers may pretend to be a trusted vendor or client.3 Verify the identity of anyone with whom you are exchanging money or data. Be sure to do an online search when doing businesses with a new partner – include the words “scam” or “complaint” and check online reviews.
Limit authorization and transaction sizes.
Regularly audit which team members are permitted to place orders, pay invoices, and access financial accounts. Consider adding an automated clearinghouse (ACH) transaction limit for things like payroll. This can stop a scammer from emptying your bank account with one withdrawal.
Build a toolkit.
Positive Pay services from First Financial Bank can help you monitor check authenticity and filter automated transfers and payments to more quickly identify fraudulent activity.
Talk to your banking specialist about fraud monitoring and prevention solutions to protect your business. If you experience suspicious account or network activity, contact your banker immediately and take steps to change passwords or otherwise stop online activity. You can also file a complaint with the FTC or your state Attorney General.