5 business fraud prevention tips

Every business is susceptible to fraud. That’s largely because there are so many different kinds of fraud.

Cybercriminals adapt their methods almost as quickly as cyber-security firms create new products and services. It's nearly impossible to protect against every type of attack.

However, there are some measures to take to help safeguard your business against hackers, cybercriminals and identity thieves. Here are five techniques you can incorporate into your business practices.

1. Protect your bank accounts

If you haven't created separate bank and credit card accounts for your personal life and business, do so now. If hackers get their hands on one account, they won't have access to the other, and vice versa. Look into the security systems your bank uses for online banking to be sure things like automatic logout are available.

Create a well-monitored reimbursement policy for employee expenses and stick to it. If you’re going to give credit cards to employees, ensure that the card provider has suitable fraud protections in place, such as automatic alerts if an employee spends over a certain amount.

Handle bills online so there are as few paper bills lying around an office as possible. The more paperwork there is, the more likely that a bill with banking information could fall into the wrong hands.

2. Safeguard your computer systems

Hackers are experts at cracking computer systems. A sturdy firewall can help protect your company data, while antivirus software can help detect breaches early on. There are several well-regarded cyber-security vendors. Find the product that best addresses your needs.

Set up strict protocols that require employees to create passwords that are difficult to decipher. Have employees change their passwords every 60–90 days, and set password requirements to help ensure they generate strong passwords.

Consider backing up your files on a daily or weekly basis, and store them offsite. If something happens to your system, you'll be able to restore the files you need without much downtime.

3. Do employee background check

When expanding your workforce, it's crucial to find people who are not only qualified but who are also trustworthy. Don’t rely entirely on references and work history. Conduct a thorough background check.

There are companies that can provide this service for you. Most charge between $30–$50 per report. When you narrow down a list of potential hires to one or two people, you can run a check on the finalists before making your final decision. Make sure you obtain proper permission to run the check.

4. Create a secure entry

A secure entry system can keep out unwanted visitors. Some key-card systems provide time-stamped records of an employee’s entries and exits from your offices.

In addition, management can limit access to specific areas to certain people. For instance, you can use a key card system to only let the IT managers inside the server room. Limiting access to sensitive areas keeps you and your business safer.

5. Purchase insurance

While there are many precautions you can take, no measure is foolproof. If a fraudulent attack occurs, having insurance is crucial.

Consider ID Theft Insurance to mitigate loss should an attack occur. Although it can't prevent the attack from happening, ID Theft Insurance makes it easier to return to day-to-day life in the event of an attack. Depending on the provisions of your policy, it may report the problem to creditors and reimburse you for money taken.

In addition, consider getting an insurance policy that specifically protects against fraud. Learn how Nationwide can protect you and your business from identity theft and computer fraud with insurance policies and resources.