D. Harrison Agency Blog
Every business is susceptible to fraud. However, small businesses are more vulnerable to this because main decision-making powers and critical responsibilities are often assigned to just a few key people.
Research has shown that small companies can lose about $155,000 annually due to fraud. The usual causes of fraud is credit card abuse and inadequate security. But there are some things that you can do to protect your business.
Safeguard Credit Cards and Bank Accounts
A lot of small business owners encounter problems due to mixing their personal banking from their business one. Make sure you separate the two so those with malicious intent don't get access to all your money. This also makes it easier to track expenses and report the right deductions of your tax forms.
You should also be more mindful of how you use your credit cards. Never give your card or number to employees. Switch to online payments or find a secure storage for your cash. You should also have a secure mailbox to receive bills and send payments.
Invest in a Solid IT Infrastructure
Invest in good anti-virus, spyware detection and malware software. You should also have a good system for backing-up your data. This will protect important company information and makes it easier to pick up and continue work in case of a cyber attack.
It's also a good idea to utilize a dedicated computer for all the company's online financial transactions. Make sure it won't be used for any online activity like email, web surfing or social media. Avoid using mobile banking apps as well.
Train Employees on Fraud Prevention
Your staff is your first line of defense against fraud. Conduct regular training seminars on basic security threats, whether it's online or offline, and the necessary preventive measures. Training should also be complemented with a strict enforcement of policies on how employees should use and manage the company's confidential information.
Do a Thorough Background Check
Do your due diligence and conduct an extensive background check on your employees, especially those that will be dealing with high-value products, cash or will have access to your company's financial data and sensitive customer information.
You can also protect your company by getting a good insurance coverage. The right policy can help cover any losses you might incur if hit with a cybercrime or fraud.
Never underestimate the dangers of fraud to your small business. Take the necessary steps to safeguard your company, like training your staff or investing in a good IT system. It's also a good idea to get insurance to help offset any damages and to give you peace of mind. At D. Harrison Agency, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. To learn more about how we can help you, please contact our agency at (410) 559-5630 or Click Here to request a free quote.