Fraud is on the rise around the world due to different factors depending on the business, and the part of the world amongst many others. The advancement of technology has played its part in the increase of fraud largely. For instance, people have adopted the use of digital channels for banking and buying things online. As a result, fraudsters have exploited the platforms used.
It is believed that fraud is the most common crime in the UK and it’s affecting every business. Although it is partly on the increase due to the digitization of transactions, small businesses around the world are also facing the problem. The susceptibility of these small businesses is hinged on several factors too.
They may include a low budget for anti-fraud measures and single ownership which makes the owner too powerful. Owners could also deploy a billing scheme or an employee trust which makes them do something off the books like check tampering.
Different ways small business can protect themselves against fraud
Small businesses today can protect themselves from joining the already existing 60% that never recover from losses. They can do this by having an effective control system, trained employees, and more which include,
● Secure business check
A small business is unique to another. As a small business owner, you need to make secure checks on every detail of your business. This is by understanding the people you work with, and the culture, structure, and nature of your office. You cannot overlook anything because the moment you have a secure business check, you can figure out loopholes that could cost you.
● Assess Risks
After a secure business check, you are at a vantage point of knowing your business risks. Once you can identify the risk of the loopholes, assess them.
● Have a grip on Policies
Develop controls through important policies that can mitigate fraud. Once you have known your business, and understood the risks, it’s only important to develop the best controls via policies.
● Maintain a risk management culture
Ensure you have timely input of insights from everyone involved in your business about the risks they stand to face in their departments. Pick up the key fraud risks and manage them continuously. Bear in mind that once there is a change in office structure and control, you are most vulnerable to fraud opportunities. So, manage the risks continually.
Finally, always get your business audited and call specialists to analyse the critical fraud-vulnerable areas in your business.
The biggest trends fraudsters are trying in small businesses
Fraud may be complex and the best way to curb or tackle it is by keeping track of the biggest trends deployed by fraudsters. Some of them include,
- Software Download Fraud
This is a backdoor method that has been trending for a while now. Fraudsters know that you need to use software to solve a problem on your computer or device. You will be able to identify most of their software if it asks for sensitive or personal information about you.
- Safe Account Fraud
This involves a suspicious call by organized fraudsters to move your funds to a safe account. The moment you drop your details or decide to move the money into your account, it’s gone. Always reach out to your bank
- Unsolicited invoices
Fraudsters send invoices to the phones of business owners and hope they hurriedly pay without noticing it is fake. It is a common trend that small business owners are susceptible to.
- Email Fraud
Also known as phishing, fraudsters send unsolicited emails to business owners hoping they fall prey to dropping important information.
Fraud protection
This involves applying measures to tackle or curb the risks, and consequences of fraud in your business. It ensures the stability and longevity of your business. Whether, big or small, as digitalization improves and is being accepted, it’s crucial you adopt fraud protection strategies.
Conclusion
Fraud happens often when a weakness is exploited by an individual or group for personal gain and it’s grown significantly. Small businesses that protect themselves from fraud by following the necessary principles of anti-fraud. Apart from understanding fraud protection, small businesses must be aware of the biggest trends that fraudsters are trying over time. It gives a vantage point and helps to tackle fraud.
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