As a business owner, you have a lot on your plate. The last thing you want is for your business to fall victim to fraud. So, how can you safeguard your business? With due diligence, strong policies and procedures and a trusted banking partner, you can better arm your business from fraudsters. Here a few important tips:

1. Always Verbally Verify Wire and ACH Instructions

Once a wire transfer or ACH payment is sent, retrieving it can be extremely challenging. A single well-timed spoofed email with altered wire instructions can result in significant financial loss.

Therefore, it is crucial to verbally verify wire and ACH instructions for every transaction, even if you have done similar transactions before. This secure practice can prevent major hassle.

Cash Management offers a way for you to electronically transfer, otherwise known as ACH - funds to vendors/contractors, and employees for payroll, for example. Sending and receiving payments electronically reduces the risk of account compromise by preventing checks from being stolen in the mail.

2. Review your Accounts on a Regular Basis

From a regulatory standpoint, businesses have a greater liability than consumers. In some instances, a business may only have twenty-four hours to report fraudulent activity to their bank, which is often not enough time to detect the fraud.

Therefore, it is essential to regularly monitor your accounts and verify that all transactions are accurate. Online and mobile banking allows you to view your accounts with just a few clicks. If you notice anything suspicious, notify your bank immediately.

3. Discuss Fraud Prevention Tools with your Bank

Banks utilize a variety of resources to safeguard your funds. Fraud prevention tools, such as Positive Pay provide businesses with the tools to significantly reduce exposure to fraud by identifying unauthorized transactions, like altered and counterfeit checks. Learn more about Positive Pay.

If discrepancies are found, the check is flagged, and placed in the Positive Pay "Exception" list for you to review to determine if it should be paid or returned.

4. Ensure your IT Infrastructure is Solid

While ransomware is often associated with attacks on large businesses, it has become increasingly common among small businesses and consumers as well.

Companies with a strong IT infrastructure are better equipped to handle worst-case scenarios and prevent financial losses. Furthermore, an effective IT team can thoroughly educate employees on best practices for fraud prevention, providing additional protection for your business.

5. Obtain Cyber Insurance

Cyber insurance has become a crucial tool for businesses to stay protected and report fraud. Did you know that having cyber insurance and proper fraud prevention tools can also help reduce business insurance costs? It’s true!

Investing in cyber insurance can help to protect your business against financial losses from data breaches and other cyber incidents. Work with your insurance to understand coverage and enhance your risk management practices.

6. Conduct Employee Training

Educate employees about common fraud schemes, phishing attacks, and safe online practices. Ongoing training and updates can help keep employees aware of new threats and best practices.

7. Work with Trusted Partners

Ensure your bank understands your business needs and provides necessary fraud prevention tools and support. By implementing these measures, you can significantly reduce the risk of fraud and enhance the overall security of your business. Preparing now will save you time and money in the future.

When considering fraud prevention measures, evaluate your banking partner. Falcon National Bank takes the time to understand your unique needs and can provide the necessary tools, with dependable, responsive support. Our Treasury Management team can help you focus on what you do best – grow your business. Get in touch with us today!