Fraud Prevention Tips
We all love the convenience of online banking and because so many transactions can be completed with a click of a button. However, banking online comes with some challenges that we must always stay ahead of as we are on the go. With the recent increase of online bank fraudulent activities in the news, I want to share our fraud prevention tips to protect yourself while banking online.
Fraud Prevention Tips
1: Education is Key!
a. Understanding email scams and educating your employees is critical to protect your financial assets.
2: Keep Your Contact Information Current
a. Your bank can contact you quickly in the event they see suspicious activity on your account.
3: Use Strong Passwords and Multi-Factor Authentication
a. Create a password that is long and does not include your name.
b. Use a multi-factor to enhance your personal and company security by requiring users to identify themselves by more than a username and password. Examples are 1) Password, 2) Text code, and/or 3) authenticator (Google and Microsoft).
4: Allow Push Notifications From Your Bank
a. Your bank can contact you quickly in the event they see suspicious activity on your account.
5: Protect Your Devices at All Times
This fraud prevention tip is often overlooked but keeping your devices updated is one of the simplest ways to stay protected. a. Keeping your phone, tablet, and computer up to date with the latest browsers and operating systems helps protect against vulnerabilities that hackers can exploit.
6: Know Which Third Parties Have Account Access
a. There may be risks with sharing your information with third-party money management apps and websites.
7: Know the Red Flags That Signal a Scam
a. Know who and why you are sharing your personal/business information to reduce your risk of a scam. If you provide your information or money to a scammer, there is often little we can do to get your money back. Knowing the red flags is a fraud prevention tip that every employee in your business should be aware of.
8: Verify the Person You Are Doing Business With
a. A common cause of wire fraud is due to lack of identity verification at critical points within this transaction. The best preventative measure is to gather and share contact information early in the transaction cycle. [For example, when small business owners sit down to sign a contract or loan origination document to secure financing (throwing out examples), it would be important to get the full names, current addresses, email, cell phone numbers of the party involved. As more information is gathered, not only does it allow you to securely store the proper contact information, but it also allows you to start educating yourself on the risk of wire fraud occurring.
9: Review Your Bank Transactions Weekly
a. Reviewing your bank transactions on a weekly/monthly basis will help to eliminate fraud by catching these activities early and taking action. Always look at the small amounts coming out of your account because over time they will add up. If you extend credit to employees, ensure to put a limit on how much can be spent daily, weekly, and monthly. Making this fraud prevention tip a weekly habit is one of the most effective ways to catch suspicious activity before it becomes a bigger problem.
10: Implement Dual and Triple Internal Controls
a. Implementing dual or triple controls within the business can reduce the risk of online fraud. You will be able to trace each step of the activity. The ideal suggestion is to have one person initiate the transaction, a second person approves the transaction, and the third person finishes it. A recommended application to implement dual and triple controls is Bill.com.
These fraud prevention tips are your first line of defense against online banking scams. Share them with your team and make them part of your regular business operations.
