Fraud Prevention Month serves as a critical reminder for businesses to strengthen their defenses against fraudulent activities. As a business owner, it is imperative to be proactive, vigilant, and informed. Here’s how you can protect your business by recognizing, rejecting, and reporting fraud.
Recognize
The first step in combating fraud is to recognize the warning signs. Fraudsters often employ sophisticated techniques to deceive businesses, but there are common indicators that can help you identify potential threats:
Unusual Transactions: Be alert to transactions that deviate from normal patterns. These may include large or unexpected purchases, repeated small transactions, or transactions from unfamiliar locations.
Phishing Attempts: Watch out for emails or messages that ask for sensitive information, contain suspicious links, or have a sense of urgency. Verify the sender’s identity before responding to such requests. Watch for minor differences in email addresses, which might be attempts to spoof a known vendor. One way to identify scammers is to change the communication channel. Call if you receive a suspicious email, or email if you receive a suspicious call. Scammers usually cannot impersonate someone across multiple channels, making this a useful precaution.
Altered Documents: Fraudsters may alter invoices, contracts, or other documents to mislead your business. Look for inconsistencies in font, formatting, or signatures. Use document verification tools to ensure authenticity.
Unusual Behavior: Employees or partners exhibiting uncharacteristic behavior, such as sudden financial difficulties and abrupt changes in financial reports may be potential red flags.
Vendor and Supplier Fraud: Be wary of vendors who insist on upfront payments, offer deals that seem too good to be true, or lack a verifiable history.
Remember, banks will never ask you to:
- Install software to enable remote access or remotely access your devices
- Download an app or third-party software through a phone call, email, text message or enclosed link
- Disclose your PIN, password, one-time verification code or bank card numbers when we contact you
Reject
Once potential fraud is recognized, the next step is to reject it. Implement robust measures and create an effective security plan to safeguard your business from fraudulent activities:
Authentication Procedures: Strengthen authentication processes for accessing sensitive information and conducting transactions. Use multi-factor authentication (MFA), strong passwords, and biometric verification to enhance security.
Employee Training: Educate employees about common fraud schemes and the importance of adhering to security protocols. Regular training sessions can empower employees to identify and reject fraudulent attempts confidently.
Segregation of Duties: Ensure that more than one person is responsible for financial reconciliation to reduce the risk of errors and fraudulent activities, this also adds an additional layer of oversight and accountability.
Secure Payment Methods: Adopt secure payment methods, such as credit card processing with encryption, tokenization, and secure payment gateways. Avoid using unsecured or unfamiliar payment platforms.
Vendor Verification: Verify the legitimacy of vendors by checking their business credentials, references, and financial stability. Avoid conducting business with unverified or suspicious entities.
Data Protection: Implement robust data protection measures to safeguard sensitive information. Use encryption, secure servers, and regular data backups to prevent unauthorized access and data breaches.
Regular Audits: Conduct regular audits of your business processes and systems to identify and address potential vulnerabilities.
Report
Reporting fraud promptly is crucial to mitigating its impact and preventing future occurrences. If you suspect you’ve been a victim of fraud, it’ s essential to take the following steps:
- Engage your bank without delay. For Scotiabank business clients, reaching out to your Relationship Manager can expedite the protective measures needed to secure your account.
- Call your local law enforcement. Reporting the fraud to the police not only aids in the immediate investigation but also helps to prevent the perpetrator from targeting others.
- Report it to the Canadian Anti-Fraud Centre (CAFC). CAFC stands as a pivotal ally in the fight against fraud. They offer indispensable resources and support, accessible via their hotline at 1-888-495-8501 or their comprehensive website.
Remember
Fraud Prevention Month is an opportunity to bolster your business’s defenses against fraud. By recognizing, rejecting, and reporting fraudulent activities, you can protect your business, maintain trust with your customers, and contribute to a safer business environment.
To learn more about how to improve and maintain your business’s security, visit:
https://www.scotiabank.com/ca/en/security/protecting-your-business/improve-business-security.html