Businesses especially smaller ones can be targeted by fraudsters because they know they are far more likely to have success when attacking them. This business risk of fraud is down to a lack of knowledge and processes that these businesses have in place.
In this blog post, we will take a look at some of the best practices to reduce the business risk of fraud.
1) Have an internet policy
Most business owners don’t appreciate how vulnerable their systems can be to an outside attack. Only when their systems are compromised they can appreciate the importance of having a secure system and business.
Most attacks these days will come into place from viruses, malware, and ransomware which can cost a business hundreds of thousands and can even put them out of business.
What’s worrying about this is most businesses are infected through their staff members opening up emails and clicking on links that they shouldn’t but they don’t know this so it’s very important to train your staff on the dangers of opening malicious code.
Having an internet policy that is covered during your staff training days is a great way of showing your staff about the dangers and what should be done if they are put into this situation.
A word of warning though, training and policies aren’t enough. You need to put in place protection for your systems in case your staff members forget their training as it only takes a second for a computer to get infected.
All of your computer systems should have a virus scanner, a malware scanner, and a firewall installed to protect yourself from these malicious fraudsters. You can pick these up online for free so you really don’t have an excuse when it comes to protecting your business.
2) Use artificial intelligence
Most business owners will be focused on their primary business goals, their sales, and their product, and not on micromanaging and knowing what each employee is exactly doing. This is very natural, but if you only look at the bigger picture, you might leave your company open to cyber-attacks and other forms of fraud. That’s why it’s important to use technology as much as possible.
For example, AI can help with tasks that are extremely tedious and error-prone like invoicing. Tools like GetYooz that are AI-based can easily process large amounts of data and automate your invoicing process. With it, you can achieve a fraud-free accounts payable process and reduce human error.
Artificial intelligence can detect patterns and anomalies, and can even help you with your own employees committing fraud.
This is only one of the examples where AI can help protect your business.
3) Hire help
As a business owner, you can’t do it all and you may want to consider hiring security or private investigation firm. The cost of hiring a private investigator is cheaper than you may think and in the long run, could save your business millions.
Private investigators can help to track down employees with long-term sickness to see if they are actually ill. If you are paying an employee to be off sick while they are nursing a broken leg only to find out they play basketball on a Tuesday night at the local gym you are wasting your money and your employee is committing fraud.
Employee absenteeism costs businesses thousands and a private investigator can help you cut down on these costs and catch your employees in the act.
If you suspect items are being stolen from your business you may want to hire security guards that scan and pat down your staff when leaving work.
As a business owner, you have to do everything that is possible to make your business a success and profitable. Without profits, you are going to run into problems very quickly and will put the livelihoods of your staff at risk too.
Being a profitable business is hard enough as it is especially in these unknown times. Your job as a business owner is harder when your own staff or outside forces try to steal from you.
This article should now have given you some ideas on business risk of fraud to protect your business.
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