Dr. Martin Bressler, a professor of marketing and management in Southeastern Oklahoma State University, has estimated that the average company owner loses up to $190,000 for every fraud discovered. This is a large amount that can spell financial disasters to all types of small businesses.
Law enforcers, cyber professionals, and academic experts have compiled important tips that can help small business owners fight disastrous frauds:
Cheque fraud is a common business scam nowadays. This involves employees who process cashier cheques and business cheques. Even though the cheques look identical to real ones, the indicated amount does not match with the customer’s account balance. Criminals can get away with this because banks usually require a window of time for validating the cheque, which is more or less one week. If cheques are not validated properly, they can leave financial gaps in the business account.
Only trust dedicated banks for wire transfers
Cyber criminals can hack wire transfers with relative ease. They can just forge cheques using the company’s business information. From there, the criminals can start skimming money. To prevent this, business owners are advised to create a regular chequeing account.
Avoid unfamiliar business funders
Different funding websites were created by the dozens to serve many business owners who want to have a fresh start or progressive expansion. To transfer funds, these websites will ask for the business owner’s account information. This is how phishing sites operate; after getting the information, the criminals can then use the account to pay for their luxuries and operations.
Confirm bills before sending payments
The Federal Trade Commission states that fraudsters often trick employees into authorising different types of purchases. Afterwards, the criminals will then threaten the employees with lawsuits or phone harassments in order to get payments. To keep payments well regulated, business owners can use online accounting software. If financial processes are automated, bills payment can be completed in a secured manner.
Different companies have also been releasing bookkeeping software with advanced financial security measures.
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