In today’s digital age, businesses of all sizes face an increased risk of fraud and cyber-crime. According to the 2024 AFP Payments Fraud and Control Survey Report, 80% of organizations across the country were targets of payment fraud. Protecting your company’s finances is more critical than ever. Main Street Bank is committed to helping you fortify your defenses against these threats. Here are some practical actions you can take to incorporate fraud prevention into your business practices.
Monitor Financial Accounts Daily and Set Up Account Alerts
For businesses, it is critical to regularly monitor financial accounts. We suggest reviewing accounts and transaction activity daily and would even recommend doing so multiple times per day. Businesses are held to a different standard than individual consumers when it comes to the window of time available for them to dispute fraudulent account activity. Businesses typically only have a 24-hour window to identify and report fraud.
One of the simplest yet most effective ways to monitor your finances is by setting up account alerts. These alerts notify you of any unusual or suspicious activity in real-time, allowing you to respond quickly. Main Street Bank offers account alerts that can be turned on based upon your specific needs.
Use Multi-Factor Authentication (MFA)
Multi-factor authentication adds an extra layer of security by requiring two or more verification methods to access accounts. It’s an essential tool for protecting sensitive information. Implement MFA wherever possible to reduce the risk of unauthorized access.
Enroll in Positive Pay and ACH Positive Pay
Services like positive pay and ACH positive pay can help protect your business from fraudulent checks and electronic transactions. Positive pay matches the details of checks presented for payment against a list of issued checks, while ACH positive pay verifies electronic payments. Main Street Bank offers these services to provide an added layer of protection for your accounts.
Protect Your Checks
Electronic payments are not the only areas susceptible to fraud and loss. As reported in the 2024 AFP Payments Fraud and Control Survey Report, 65% of organizations indicated that checks were their most vulnerable payment solution. Check washing, where a check is stolen and the payee’s name and/or dollar amount of the check are changed, has increased in occurrence, particularly among business bank accounts.
In addition to implementing bank services like Positive Pay, ensure any physical checks connected to your business are secured at all times. When mailing payments, it is best practice to hand-deliver items directly to the post office rather than using a shared public box, or even a residential mailbox. Furthermore, using services such as a financial institution’s online bill pay or ACH automated payments can help you avoid the need for sending out physical checks.
Train Employees on Security Threats
Your employees are your first line of defense when it comes to fraud prevention and cyber threats. Educate them on the red flags of phishing emails and other security threats. Main Street Bank provides a free online employee training tool to help your team recognize and respond to potential threats.
It is important to create an environment of trust and awareness in the workplace when it comes to identifying and protecting against fraud. Have open conversations at all-employee meetings and smaller team huddles and focus on topics like phishing and business email compromise. Employees should feel comfortable asking questions and sharing when an email seems suspicious before it becomes a problem.
Practical Steps for All Businesses
Regardless of your business size, implementing these steps can significantly enhance your financial security:
- Regularly update and patch your software to protect against vulnerabilities.
- Use free cyber security tools and resources, like these provided by CISA, to help protect your business.
- Conduct regular cybersecurity audits to identify and address potential weaknesses.
- Create and implement a cyber incident response plan using these resources from MassCyberCenter.
- Implement strict access controls to sensitive financial information.
- Backup your data frequently and ensure that backups are securely stored, preferably in a separate area or location.
- Review this recording, featuring a panel of industry experts on the various aspects of business cyber security best practices.
Protecting your business finances requires vigilance and proactive measures. By setting up account alerts, using multi-factor authentication, enrolling in positive pay services, and training your employees, you can significantly reduce the risk of fraud and cyber-crime.
For more information on how Main Street Bank can help secure your business, contact us today or explore our free online employee training tool.