Fraud prevention to-do list
When running a business, you want to ensure that everything runs smoothly. That requires being aware and paying attention to many things. In order to thrive, it's important to be mindful of fraud. Fraud affects small businesses more than any other size operation but there are tools to help prevent it, and this to-do list is one of them.
Protect your small business from fraud.
Beyond any direct financial losses, businesses that fall victim to fraud or other malicious online activities are often also at risk of:
Losing funds
The Association of Certified Fraud Examiners in 2022 estimated that businesses lose 5% of their revenue to fraud each year. This amounts to over $3.6 billion in annual losses. Protecting your online accounts—from email and shopping sites to banking and payment platforms–is the first step you should take to avoid fraud.
Losing customers
A potential breach in one of your online accounts could expose sensitive or private information about your clients. If your clients believe that you didn’t take enough steps to protect their information, they might decide to stop supporting your business altogether.
Scaring off partners
If your business falls victim to a cyberattack or hacking, it could damage your business’s reputation. This might make potential partners hesitant to be associated with your brand, fearing that they could also face similar problems.
Damaging their credit score
Imagine someone unauthorized gets access to an online account where you’ve stored your credit card details, like on an online shopping site. They could use your credit card to make purchases, and if you don’t realize it and report these unauthorized transactions as fraud, you’ll end up owing more money than you should. This can negatively impact your credit score and also create financial issues by affecting how much money you have available.
To help your business avoid these side effects, there are many measures you can take. Start by taking the steps listed in our checklist.
*The purpose of this page is solely to provide information and should not be considered as financial advice
**Melio does not provide legal, tax or accounting advice; you should consult a professional advisor before making any financial decisions.
