How to Protect Your Business From Fraudulent Activities
Fraudulent activities are an unfortunate reality of the modern economy. With so much information out there, it is not hard for criminals to find personal and company data that can be used against you. It’s essential to take steps to protect your business from becoming a victim of fraud, especially if you’re just starting or don’t have much capital yet. Fortunately, there are some easy ways you can safeguard your company today!
1. Know Who You’re Dealing With
Before you do business with another company or individual, be sure to thoroughly check them out first. Conducting thorough online research is a simple way to protect your company from fraudsters. Check their website for inconsistencies and ensure that other people have given positive business reviews. If everything seems in order, then you can proceed with your dealings.
Never give out personal information unless you’re 100% sure of who’s asking for it. If someone claiming to be from a business contact you and asks for your sensitive data, such as account numbers or passwords, this is probably a scam. Fraudsters work by trying to trick you into giving up your information, so make sure that they’ve got indisputable evidence of who they are and what company they’re from before you comply.
2. Take Steps to Secure Your Company Data
Data fraud is a common type of fraud that many companies suffer from every year. Keeping you and your company’s data secure should be one of your top priorities as an entrepreneur. One easy way to prevent this type of fraud is by using the service Security Metrics. This tool enables you to take control of your business data and prevent unauthorized access.
3. Consider Using a Virtual Assistant
Virtual assistants can offer many benefits for small businesses that may not have the manpower or resources to get specific tasks done. They’re an affordable service and can help ease some common burdens such as bookkeeping, sending out invoices, and responding to email inquiries. They can even help find your customers!
4. Monitor Your Accounts for Signs of Fraud
If you keep an eye on your company’s accounts, you’ll be able to notice any suspicious activity right away. This way, if something does happen, you can limit the damage that it causes. Some of the most common signs of potential fraud are multiple payments being made to one vendor, large wire transfers between accounts, and more unpaid invoices than usual. If you notice anything that seems off, then it’s probably best not to complete this transaction.
5. Consider Hiring a Lawyer
Legal representation is a great way to defend your company. Prime lawyers can use their expertise and resources to find holes in pending cases that may get you off the hook or prevent legal issues from occurring in the first place. Hiring an attorney can be expensive, but it may be worth the money if you’re running a small business with limited funds.
6. Only Accept Wire Transfers From Businesses You Know
For international transactions, be sure that the company is legitimate before consenting to a wire transfer. This is especially true if you have not done business with this company before. Wire transfers are an easy way for scammers to take your money, so it’s essential to be careful. Unfortunately, this type of fraud is hard to recover once your money has been stolen.
7. Train Your Employees on How to Spot a Scam
If your company employs several people, you should consider training them about typical schemes that could affect your business. Teach them what information they should never give out over the phone or via email and what to do if they receive any suspicious inquiries. If everyone in the company is on the same page about these things, you’ll have a much lower risk of being scammed yourself.
8. Protect Your Personal Information
Once someone has access to your company’s records and files, they can easily take out new credit cards in your name and perform other fraudulent activities on your accounts. Learning to prevent identity theft is essential for small business owners to keep themselves and their companies safe.
Conclusion
In the business community, scammers are trying harder than ever to steal from small or new companies. Entrepreneurs need to be extra vigilant and do what they can to protect themselves. By making a few adjustments to your workflow, you can very quickly lower your risk of being scammed, increasing your profits and security in the process.
