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Dangers Of Business Fraud And How To Prevent It In 2023

  • October 31, 2022

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Dangers Of Business Fraud And How To Prevent It In 2023

Business fraud is very much real in this present day. There are many businesses that are falling victim to cybercrime and with there being no real policing for online crimes, it can be hard for businesses to get help when it’s needed.

Not only does it impact the business financially but it can also impact the reputation of the company when it comes to customers. This is particularly the case in instances where customer data has been lost or stolen.

In this digital era, there are some preventative measures that can be taken to ensure any business is safe from fraud. Here are some ways to prevent business fraud in 2023.

Use chargeback and payment protection services

When it comes to protecting payments that customers make and that are made to the business, use chargeback protection. This sort of payment protection is helpful when chargebacks made by scammers are attempting to impact any profit being made.

For small businesses, having this protection in place can be critical when the bank balance isn’t as healthy as it may be in comparison to those who are well-established in the industry.

Identify the areas where the business is most vulnerable

There are always going to be vulnerabilities in a business and no business is immune to this. From payment processes to the way data is collected and stored, it’s important to strengthen any business areas where attackers may find it easy to infiltrate the network.

Preventing business fraud comes with taking the initiative to do everything in the company’s power to stop it from happening.

Train employees to spot attacks and fraudulent attempts

Training employees is a big one because, without employees who know what to look for when it comes to fraudulent activity and cyber attacks, it’s more likely to happen successfully.

With regular training and updates on methods used by these hackers to break into business systems, it gives employees the confidence they need to help stop hackers from stealing information.

Secure accounts and provide them with two-step authentication

Any accounts should be made doubly secure with a two-step authentication. Two-step authentication basically adds another layer of security to the account. Typically, to log in to an account, a username/email and password are required.

Once this has been entered, an additional step is put in place. This could be a code sent to the email or to the person’s mobile phone. It’s an extra step that can certainly be helpful to put in place.

Limit data collection to protect the business

In order to protect the business, try to limit the amount of data that’s collected by the business itself. When acquiring customers or clients, only store the information that’s relevant at the time and hold onto it if it’s absolutely necessary. Otherwise, when it’s done with, it can be removed if required. 

The dangers of business fraud are ever present and with data being a hot commodity at the moment, it’s good to try and avoid it from being stolen or used fraudulently.