My Business Experienced Financial Fraud: What do I do?

What to Do If You Suspect Fraud

You're not alone if your business has been the target of financial fraudsters. According to the Associated for Financial Professionals (AFP), about 80% of businesses reported experiencing some version of fraud in 2023. Unfortunately the losses can be significant. It's best to be prepared and work with your vendors, especially your bank, to prevent fraud. 

How Banks Help Mitigate Fraud

Banks play a crucial role in fraud prevention, offering businesses tools and strategies to safeguard their assets:
 

• Fraud Detection Systems: Banks use fraud monitoring to detect unusual transactions and flag suspicious activity in real time.
• Multi-Factor Authentication (MFA): Many banks require MFA for online banking access, adding an extra layer of security.
• Transaction Alerts: Businesses can set up notifications for any high-risk transactions or unexpected account activity.
• Secure Payment Processing: Banks provide secure payment gateways and encryption protocols to protect transactions.
• Account Protection Services: Banks offer anti-fraud protections such as positive pay for check transactions and dual authorization for wire transfers.
• Fraud Dispute Assistance: In the event of fraud, banks assist businesses with dispute resolution.

Talk with your banker about the options that are available to you to provide additional protections for your business. In the event that your business has experienced an instance of fraud, here's what you should do:
 

• Contact your bank immediately to freeze affected accounts and shut down any associated debit cards.
• Report the fraud to law enforcement.
• Conduct an internal audit to identify security weaknesses.
• Implement stronger security protocols to prevent future incidents.

Your employees are your first-line of defense against fraud. Training your team to recognize the signs and methods is one of the most important methods of prevention you can invest in to keep your business safe. 

Bank fraud is a serious threat, but with the right safeguards in place, businesses can protect themselves from financial and operational disruption. Stay vigilant, educate your employees, and prioritize cybersecurity—your bottom line depends on it.