4 Simple Ways You Can Protect Your Business from Fraudulent Activity

4 Simple Ways You Can Protect Your Business from Fraudulent Activity

When you own your own business, you’re the one who calls the shots. You decide when and where you work, whom you hire, and what services or products your business offers. Business owners who aren’t employed by someone else enjoy many benefits from running their own company. Yet operating a business also presents its own unique risks. There are many types of fraud targeting businesses of every size, but some are more common than others. Fortunately, if you implement simple measures to protect your business from fraud, you can significantly reduce your risk of being taken advantage of financially. Whether it’s smaller details like double-checking invoices for mistakes or larger strategies like requiring pre-paid invoices for services rendered, implementing these 4 tips can help keep your company safe:

Install Video Intercoms

Video intercoms can be a valuable tool in protecting your business from fraudulent activity. They allow you to see who is at your front door before granting access to your office or another workspace. Experts recommend installing video intercoms on every entrance to your building, including loading docks, back doors, and side entrances, if possible. Suppose you own a business that provides services like an auto repair shop. In that case, video intercoms can help you identify the person or persons at your front door so you can determine if they are a legitimate customer or someone trying to gain unlawful entry. 

Perform Credit Checks on All Clients

Credit checks can help ensure that the clients you do business with pay their bills on time. If you offer services like general contracting or medical billing, you may be called upon to provide a service before being paid. If a client has a bad credit rating, you might consider getting a security deposit before moving ahead with the project so you can be sure to be repaid. This can be especially important if you work in a field like home repair or home building when providing a service before receiving payment can be risky. If a client has a spotty credit history, there are some steps you can take to help protect yourself financially. For instance, you may be able to get a surety bond or a lien on the property to be sure you are paid in full. 

Implement Strong Employee Training Practices

Employees represent the face of your company and act as your first line of defence against fraud. While fraud may not be their intention, it is essential to be sure all employees are trained to spot signs of it. Fraudsters may attempt to steal company information, like credit card numbers, or alter statements or invoices that are sent out to customers. Some of the best ways to protect against this include regular inventory checks to detect missing items and consistent use of a password-protected computer log-out system. When accepting payment from customers, employees should always confirm the identity of the person receiving the payment. Employees should also confirm the amount of the payment and the account number included on the check or money order. When sending invoices, employees should also ensure the account number listed on the invoice and the amount of the payment due.

Protect Against Cyber Attacks

A cyber attack happens when a hacker gains access to your computer network, stealing your computer system’s information, including credit card numbers and other data. This can occur in various ways, including through an internet connection, infected email messages, and unsecured work computers. There are multiple ways to protect your financial information and customers’ information from fraud. These include monitoring computer activity and regularly updating software, installing anti-virus protection, implementing firewalls, and scanning all emails for viruses or malicious software. You may also want to consider investing in a virtual private network or VPN, which can help protect data while you’re on the go. 

Summing Up

Business fraud is a problem faced by businesses of all sizes. Fortunately, there are a few ways that business owners can protect themselves against fraud, including installing video intercoms, performing credit checks on all clients, implementing strong employee training practices, and protecting against cyber attacks.

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