Owning a business has its pros and cons. Having something you have full authority and responsibility for feels maturing and liberating. While you enjoy liberty and responsibility, a bomb drops just beside you. That is protecting your business. Saving your business and consumers from customer fraud. Making online services available to locals is something they will appreciate and support. But still, there is always an underlying fear of having to come across or experience some sort of customer fraud.
Association of Certified Fraud Examiners estimates that over 50% of small business experience fraud at some time throughout their operations, with each incident costing them an average of $114,000.
In addition to phishing and hacking, you risk financial liability if you accept a false payment. It is unpleasant, to say the least, to have to deal with a fraudulent purchase, the chargeback procedure, and the possible damage to your company’s image.
Anybody may now open an online business more easily than ever thanks to the growth of online services. Sadly, it has also made things much simpler for fraudsters, who may now conduct transactions without actually having a real payment card in their possession.
Cybercriminals Today
Currently, buying stolen credit cards through shady web marketplaces is relatively simple. Thieves have also discovered weaknesses in a variety of security measures, including the weak passwords that users use to access their accounts and the procedures credit card issuers employ to provide refunds. Fraudsters can run these scams successfully for years without being discovered.
The worst part about this is that, in the end, customer fraud hurts online services the most. Customers can ask their credit card company for a refund if they feel they have been defrauded. This implies that the company loses its merchandise without receiving a refund.
About as rapidly as cyber-security companies release new goods and services, cybercriminals modify their techniques. It is almost impossible to provide defense against every kind of assault.
But, there are several actions to take to help protect your business against hackers, fraudsters, and identity thieves.
- Protect Your Business Bank Accounts
The first step will always be to create separate accounts for your business. Your personal and professional accounts should always be different.
Through this, in case hackers get access to one account, they cannot access the other and vice versa. To confirm that features like automatic logout are accessible, look into the security mechanisms your bank utilizes for online banking.
Have a strict reimbursement procedure for employee spending that is closely followed. Provide workers credit cards only if the credit card company has adequate fraud safeguards in place, such as automated warnings if an employee spends more than a specific amount.
Pay bills online to reduce the amount of paper sitting around a workplace. The likelihood that a bill containing financial information may end up in the wrong hands increases with the amount of paperwork.
- Regular Security Audits
Protecting your business is no one-time responsibility; but rather a constant one. Auditing your online service to ensure every little detail can be of great help. It will help you notice any pattern or incoming customer fraud.
The cybersecurity specialists of a company can identify any weak areas by conducting a security audit. By patching such weak spots, thieves are less likely to commit online fraud, such as software that demands a ransom to unlock files.
Businesses must take advice on how to strategically strengthen their networks against fraud efforts. Representatives may at first feel overburdened and fear that the issue is too difficult to handle, but the frequency of customer fraud justifies the effort of putting in place preventative measures.
- Educating Employees About Internet Fraud
Online fraud is a team effort, thus it should ideally be prioritized by firm executives, who should then urge staff members to do the same. To make it happen, all staff must first get training on what can be considered internet fraud.
Several initiatives profit from prizes and freebies. If a victim gives some information up front, they can learn that they have the chance to win sweepstakes or receive free access to pricey software. Transactions at work can also be related to fraud.
- Get An Insurance
Getting insurance to protect your business is the most important of all cautions. Your online service will thrive without hiccups if you have insurance backing it up.
To reduce loss should an incident take place, think about ID Theft Insurance. While ID Theft Insurance cannot stop an assault from occurring, it can make it simpler to resume normal life after one. Based on the terms of your policy, it could notify creditors of the issue and pay you back for any money seized.
Consider purchasing insurance that offers particular fraud protection as well. Find out how Nationwide’s insurance coverage and services may shield you and your company against computer fraud and identity theft.
- Background Check Before Hiring People
When you look out for more people to add to your online services team, it is important to find the right people- qualified and trustworthy. Don’t just rely on your employment history and referrals. Do a comprehensive background investigation.
Some businesses can offer you this service. Most charge $30 to $50 for each report. You may do background checks on the finalists once you’ve reduced your list of possible hiring to one or two candidates. To conduct the check, make sure you have the appropriate authorization.
