As business deals increasingly move into the electronic realm, it becomes critically important to be aware of new threats to your business. People committing fraud are creative, and new scams are introduced daily. Inc. Magazine published an article about several new scams that affect small to mid-size businesses which highlights the importance of being vigilant.
In addition to these new scams, we are seeing higher instances of the “tried and true” forms of fraud that you may have heard of before:
- Check fraud continues to be common and is on the increase as debit and credit cards become more secure with EMV chips. If you receive a check and are instructed to cash it and send money back to the check issuer, there is a high probability it is fraudulent.
- Phishing and email hacking have been around since the beginning of the internet, however there has been an increase in fraudsters posing as you to send emails to your financial institution requesting ACH or wire transfers. If the financial institution is not vigilant about verifying email requests by phone, there is a potential for lost funds.
- The WannaCry ransomware virus became huge news in 2017 as it affected several large companies and governmental agencies across the world.
It may seem like there is a lot to worry about, but you can protect your business from being scammed:
- Educate yourself and your employees. The Federal Trade Commission is an excellent resource with information about protecting your business.
- Create “dual control” mechanisms for online or phone transactions that allow you to verify them before they are complete.
- Check your bank accounts on a regular basis. It is important to be aware of what is going in and out of your account on a regular basis to catch potential fraud as soon as possible.
- Check with your financial institution to be aware of the protections they offer. Financial institutions are trying to stay one step ahead of the con-artists and fraudsters. Idaho Central has great services available to help you safeguard your accounts and manage your business. Contact us today to find out more about our business products and services.