Fraud Prevention For New Business Owners

Posted by Busey Bank on Mar 28, 2024 9:15:00 AM
Busey Bank

Starting a new business can be very exciting, but it also presents several challenges—such as combating fraud. Every business is susceptible to fraud, largely because there are so many different ways that scammers can access an organization’s private information. Additionally, cybercriminals often adapt their methods almost as quickly as cybersecurity firms can create new products and services to prevent them from stealing money or data.

A cell phone with a yellow yield sign covering it and "scam alert" written below it.

For this reason, when starting a new business, it's crucial to remain vigilant and proactive when it comes to fraud prevention. Below are some essential steps and strategies to help prevent fraud as a new business owner.

Educate Yourself and Your Team
The first step in combating fraud is to become well-informed. As a new business owner, take the time to educate yourself and your team about the common types and warning signs of fraud. Make fraud awareness a regular part of your training program and ensure that your employees know how to identify and report suspicious activities.

Create a Fraud Policy
Establish a clear and comprehensive policy for your business that outlines steps to take when fraud is suspected or detected. Communicate this policy to your employees, so they know what to do in the event of a potential incident.

Train Your Team
Regularly conduct fraud prevention training for your employees. Cover topics like recognizing warning signs, reporting suspicious activity and adhering to the fraud policy. An informed and prepared team is a valuable asset in combating fraud.

Implement Strict Access Controls
Controlling access to your financial systems and data is essential in preventing internal fraud. Only grant access to employees who genuinely need it to perform their job responsibilities. Keep a detailed record of who has what and update these permissions as roles change or employees leave the company.

Secure Your Financial Information
Protecting your business's financial information is paramount. Safeguard your bank account details, credit card information and other sensitive data. Some best practices include using strong, unique passwords for your online accounts, enabling multi-factor authentication wherever possible, regularly reviewing your bank and credit card statements for unauthorized transactions and storing sensitive information in a secure, password-protected location

Invest in Cybersecurity
Consider investing in online security solutions to protect your business from cyberattacks. Antivirus software, firewalls and intrusion detection systems can help keep your systems and data safe. Regularly update and patch your software to prevent vulnerabilities that hackers could exploit.

Monitor Your Accounts Regularly
Stay vigilant by frequently monitoring your bank accounts and financial statements. Keep an eye out for unusual or suspicious activity and report any discrepancies to your financial institution immediately.

Use Secure Payment Methods
When it comes to receiving payments, ensure that you are using secure and reputable payment methods. Credit card payments and bank transfers are generally safer than less regulated options. If you accept checks, verify their authenticity before depositing them. Busey’s Check Positive Pay solutions provide multiple options for business owners to choose from to meet their select needs. From Traditional Positive Pay and Payee Match to Reverse Positive Pay and Check Block, you can add an extra layer of security to your accounts. Our ACH Positive Pay solutions allow you to “authorize” transactions to post and blocks any unauthorized items—and can be done automatically to save you time.

Protect Your Website
If your business operates online, your website is a prime target for cybercriminals. Ensure that your website is secure by using encryption to protect customer data, keeping your content management system and plug-ins up to date, regularly scanning for malware and vulnerabilities and implementing strong password policies for your website's admin panel.

Be Wary of Phishing Scams
Phishing is a prevalent form of cyber fraud. Educate your team about the dangers of phishing emails and other deceptive communications. Encourage employees to double-check the sender's email address and avoid clicking on suspicious links or downloading unknown attachments.

Verify Vendors and Suppliers
If you work with vendors or suppliers, take the time to verify their legitimacy. Request references, check for reviews and ratings, and ensure they have proper business credentials. This reduces the risk of falling victim to fraudulent suppliers.

Report Incidents Promptly
If you suspect or detect fraud, report it to your bank as well as any relevant authorities. Timely reporting can help minimize the damage and prevent future incidents.

Stay Informed
Fraudsters are constantly evolving their tactics, so staying informed is critical. Keep up with the latest fraud trends and emerging threats. Consider joining industry associations and participating in relevant workshops or webinars on fraud prevention.

Add Fraud Mitigation Tools
Busey offers business owners the assistance and answers they need to keep their business successful and nimble. With solutions designed specifically for your business, our Treasury Management team will analyze your cash flow needs and recommend ways to make the most of your money through automated solutions. You'll feel secure knowing that Busey's behind you.

To learn more about our Check Positive Pay and ACH Positive Pay, visit

If you are already a Busey customer, please contact your Busey Relationship Manager or Treasury Management Specialist with any questions or for additional details on our fraud protection solutions. You can also check out Busey’s Fraud Prevention FAQs in order to learn more about how to protect yourself, your information and your business from fraudulent activity.

Topics: Fraud

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