Every business can be a victim of fraud, so it’s important to be proactive and aware of the best ways to protect your company. Read our top four tips to help prevent business fraud.
4 Ways to Protect Your Business from Fraud
1. Use Positive Pay to deter check fraud.
Positive Pay is an automated cash-management service that Minster Bank provides to businesses to help deter check fraud. Positive Pay validates checks presented to your account.
The system automatically matches the date, check number, dollar amount and account number of each check against a list provided by the company. This method can detect the following:
- Stale dated checks
- Encoding errors
- Duplicate serial numbers
- Voided checks
- Checks with an altered amount
- Checks with an altered payee
An additional feature that Minster Bank offers is ACH Positive Pay, which allows you to set dollar amount maximums and choose what companies can submit ACH debits to your accounts.
2. Evaluate your business’ security measures.
Review the data security measures you have in place for your business, then take the following steps to help protect your business from potential fraud:
- Protect your business data by deploying firewall protections on your network, installing anti-malware/anti-virus software on all devices and encrypting sensitive files with strong password protection.
- Educate your team on best practices for data security and other sensitive information, including how to spot phishing emails and when to use encrypted or password-protected emails.
- Keep business and personal finances separate by establishing an EIN for your business. You can also apply for a business credit card to help monitor your business finances and watch for any signs of fraud.
- Follow a data security plan that establishes clear policies on handling a data breach, when to change passwords, how to secure remote access and more.
3. Conduct background checks before hiring employees.
Finding the right individuals for your team takes time. You’ll want to ensure your employees are qualified to do the job but also trustworthy, especially those with access to sensitive financial information.
Conduct a thorough background check in addition to checking references and work history. The minimal cost is worth it to help prevent employee fraud in your business.
4. Review your company’s financial records.
Consider hiring an outside consultant or professional accountant to review your company’s financial records on a quarterly basis. This will help identify fraudulent activity early, and a professional can assist you in defining internal controls and policies.
Turn to Minster Bank for Your Business Banking Needs
We’ve been helping business customers like you for over 100 years. Minster Bank is here to keep your business safe and secure through payroll services, Positive Pay, employee HSAs, cash management conveniences, business loans, online banking, bill pay and more.