How to protect your small business against fraud

Business owners have too many duties and responsibilities to keep their company running efficiently. One of the major responsibilities they have is to keep ensuring sufficient security measures in place to protect organizational and employee data from various non-financial and financial fraudulent scam. In the era of tech, online fraudulent activities are increasing day by day. According to a survey conducted in 2018, 82% of businesses reported experiencing some form of fraud.

Findings which came out of the survey conducted indicated that large enterprises were at a particularly high risk, small businesses were not exempted from the attacks. So, if you are running your small business in the city like Delhi and Mumbai and want to know ways to protect your small business against various frauds, this article is for you.  The article will help you provide tips on how to protect small business against fraud.

Company should conduct financial checks and balances regularly

The first tip to protect small business against fraud is to perform an internal review of company finances monthly. The business must make sure payment amounts match all invoices, and check for missing documents. The company must conduct random audits or conduct the audits of the books yearly which shows employees that you are serious about fraud and deters would-be thieves from third party companies.

Educate yourself

The business owners must gain knowledge first about the way to protect small businesses against fraud and what types of fraud may target their enterprise. Some of the common small business frauds are cash theft, online banking, payroll fraud, and false invoicing.  The fraudulent activity has the capacity to destroy your business.

Providing education to the staff members

The owners of the business must provide education to their staff members regarding the security of the organization against fraud. The company must hold various workshops and training sessions on common security threats be it financial or non-financial, and online or offline as well as prevention techniques to overcome the threats and frauds.

A proper insurance is must to have

It’s important to protect money losses from workplace fraud as crime and fraud-related losses generally aren’t covered by property insurance policies. “Fidelity Insurance” protects your business against criminal acts such as robbery, embezzlement, forgery and credit card fraud.

Protect your bank accounts

If you are the owner of the business and doesn’t have created separate bank and credit card accounts for your personal life and business, do so now. If hackers crack one bank account, get their hands on one account, they won’t have access to the other, and vice versa. You must look into the bank’s security systems for online banking to be sure that things like automatic logout are available.

Hope the article has helped in providing in-depth insight as to how to protect your small business from fraud. For more interesting articles related to business like this, visit Revopreneur-a global business magazine offering platform to entrepreneurs, startups, and business leaders who are bringing a revolution throughout the world.


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