25 per cent of small businesses are affected by fraud every year. And it can be hugely damaging for a company. Not only will you lose money, but it can also harm staff morale and the reputation of the business. Below, we explore how to protect your small business from fraud.
Protect your credit cards and bank accounts
The first step is to maintain the safety of your credit cards and bank accounts. You should never give out any of these details unless there’s been a clearly authorised request. Many scams will attempt to extract these details by sending fake invoices, or by making information request with forged email addresses. Training your financial staff to be aware of this threat can be a useful defence.
Protect your online system from hackers
A common scam is when hackers attempt to steal personal information from your online system. The main way to combat this is to protect your online system with the right malware. These packages can defend you from hackers and alert you to suspicious activity.
Make sure your staff are up to date with precautions
Protecting a business from fraud is a team effort. If one staff member isn’t aware of the right precautions, then it could compromise the whole business. As such, you should be training and educating all your staff about fraud. Regularly update your precautions and give training to spot the latest threats, such as phishing.
Keeping admin up to date
Sometimes, even with the best precautions, you might not be able to stop fraud from occurring. However, keeping your admin up to date can be a handy way to spot and deal with fraud quickly. This way, you can quickly identify anything suspicious in the books or anything that looks abnormal and come up with a response. Without this, if your accounting books are a mess, it can be easy to miss fraud and allow other scams to get through the system too.
Making sure your small business insurance is up to date
Business insurance can help you limit the damage of any financial loss. Most packages will ensure that you’re covered for any financial losses that weren’t your fault. Just make sure that your small business insurance is up to date and sign up with a dedicated provider that’s experienced with SMEs.
Protecting your small business from fraud is key to its health. By training your staff, keeping your admin rigorously up to date, renewing your insurance and by protecting your bank details, you can take the appropriate steps towards preparing your business. In the long-term this can save you plenty of money and boost morale.