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5 Fraud Prevention Tips for Protecting Your Business

Written by: Katie Klug, Managing Director Deposits and Treasury Management

As a business owner, you have a lot to manage. The last thing you need is for your business to become a victim of fraud. So, what can you do to protect your business? As Managing Director Deposits and Treasury Management, I have the privilege of partnering with many business owners like you, and here are 5 steps I recommend taking when it comes to protecting your business:

Always Verbally Verify Instructions for Moving Money

Once a wire or ACH goes out, it can be incredibly difficult to get it back, and all it takes is being fooled by one well-timed spoofed email with a change of wire instructions to lose your money.

That’s why verifying wiring and ACH instructions verbally for every transaction, even ones you’ve done before, is a must. Using this secure method can prevent major headaches.

Review Your Accounts Regularly

Unlike consumers, businesses have fewer protections when it comes to fraud. For example, businesses only have twenty-four hours to report fraud to their bank. This limited timeframe can sometimes be too small to even know fraud has occurred.

This is why it’s important to monitor your accounts regularly and make sure the transactions that appear are correct. Notify your bank immediately if there is anything suspicious.

Talk to Your Bank About Fraud Tools

Banks employ a suite of tools to protect their client’s money, with two of the most common being Positive Pay and ACH Filter. These tools let your bank track transactions from checks and electronic payments to ensure they are legitimate.

If something doesn’t match up, your bank will contact you so you can work together to decide whether it is valid. This way, the potentially fraudulent transaction can be captured immediately.

Prioritize on a Solid IT Infrastructure

Although many picture ransomware targeting large businesses, ransomware attacks have become increasingly common for small businesses and consumers as well.

Companies with a robust IT infrastructure are prepared for the worst-case scenario and have a greater ability to prevent losses. Additionally, a strong IT team will thoroughly educate employees about best practices for preventing fraud, which will also help protect your business.

Get Cyber Insurance

Cyber insurance has become an essential tool for businesses to stay protected and report fraud. But did you know that having cyber insurance and proper fraud tools might also help mitigate business insurance costs? It's true!

As technology becomes increasingly integral to business operations, cyber security is no longer optional but a crucial measure to protect your business while helping reduce overall expenses.

From simple steps to high-tech solutions, you can significantly mitigate risk and boost your business's security, and preparing now will save you time and money in the future. And, as you take fraud prevention measures, consider your banking partner. Does your bank understand your unique needs and equip you with the necessary tools while providing dependable, responsive support?

The right fraud prevention tools, practices, and support will not only go a long way in keeping your business safe, but it will also provide you with peace of mind, allowing you to focus on what you do best—growing your business.

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