The COVID-19 pandemic forced a number of industries to quickly pivot to the online world. Many businesses transitioned to remote workers, digital asset management systems, and communications through email skyrocketed. However, as businesses utilize the online space more, online fraud has only managed to keep pace. According to some reports, almost 30% of small businesses will experience fraud. As more companies look to capitalize on the digital world, it’s important to be cautious as you never know who you could be unintentionally inviting into your business.
Fraud can take a number of different forms: corruption, asset misappropriation, and financial statement fraud, among others. All of these types can be encountered at any size of business if the proper steps aren’t in place to prevent fraud. Small business owners might find themselves with limited capital to invest in staff or consultants, however, there are many things businesses of all sizes can do to make it more difficult for cybercriminals to gain access to their financials or asset information.
Fraud Prevention Tips
- Utilize anti-virus/anti-malware software on your (and your employees’) computers, laptops, and phones. These types of software can help detect any unauthorized or unusual behavior and provide protection without much effort for you. Should a bigger issue arise, the software can alert you to their findings and how to proceed to fix them.
- Practice and teach good password habits. Every year, there are reports of the top 100 passwords that people use — don’t get caught with one of your passwords on that list. Many companies encourage their workers to use a password vault that stores all of their passwords under a single master password. Many vaults can also create random passwords, making it that much harder for fraudulent activity to happen.
- Computer and phone security are of the utmost importance. Many sites and services now offer two-factor authentication (2FA) for security. However, sharing access to your computer or phone could also provide cybercriminals access to your information. Create separate profiles for each person using that computer or phone, and make sure you aren’t giving access to all of your applications with one single login.
If you detect fraud or are concerned that it might be happening in your business, it’s necessary to act quickly. The first step is to freeze or set up a fraud alert on your credit report. Both of these make it more difficult to access your credit, which prevents criminals from opening new accounts in your name. Second, contact your banking institution and inform them of the potential fraud so they can begin monitoring your accounts (if they haven’t already). Lastly, remember that you aren’t alone if you fall victim to cyber fraud. Cybercriminals are extremely well versed in what they do, and use fear to gain access to the information they want.
Community Bank of the Bay places the safety and security of our client data at the highest priority. Our clients have access to Client Services, where you can easily change passwords, logins, PINs, and more should you have a concern about fraudulent activity. Business members that utilize our loans also have access to trusted financial services and experts to deter cybercriminals from accessing your financial information.
By Margie Perry, SVP/Chief Experience Officer, Community Bank of the Bay, Danville Branch