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Feb 23

Protect Your Business from Scams and Fraud

Reading Time: 3 mins

Every business owner wants to ensure their business is thriving. They keep up with the trends, update their business operations and protocols, hire employees best suited for the job, and offer their products to the right audience. But, all of them also have to face various challenges to make sure that actually happens. There are enough challenges to keep everyone on their toes from dealing with competition, understanding new social media hype, and developing a marketing strategy to protect themselves from cyber threats.

While the companies are usually familiar with how to deal with most of those issues when they arise, many of them struggle when it comes to coping with the growing threat of fraudulent activities. Terms like AML fraud, CNP fraud, ransomware, or phishing attack are not part of their everyday vocabulary.

Luckily, you can implement strategies in your business to protect it from scams and fraud and ensure these terms stay as unfamiliar as they are.

 

How to defend yourself against scams and fraud?

The risk of fraud will never disappear, but there are steps you can take to mitigate them.

1.    Identify the risks

Before you can start protecting your business, you need to know what you are protecting it against. The most common fraud and scams businesses can deal with are:

  • Ecommerce fraud
  • AML fraud
  • Phishing schemes
  • Identity theft and account takeover
  • Ransomware

By identifying the risk your business might face, you will be more equipped to deal with them. You can then plan accordingly, conduct a risk assessment, and fix any issues you find that might leave you vulnerable to the attack.

2.    Conduct regular updates

Did you know that a large number of cyber-attacks exploit the vulnerabilities in the systems or networks that could have easily been fixed just by conducting a standard update? According to the Institute for Internet Security researchers at the Westphalian University of Applied Sciences, only 6% of surveyed websites had up-to-date software, leaving 94% of them exposed to threats. That can easily be prevented by simply turning on the automatic update.

3.    Educate your employees

The most significant risk factor any company has is people. Due to their trusting nature and unfamiliarity with the dangers they might face, they are an easy target for skillful fraudsters. If they are aware of threats they might face and how to defend themselves and their business, they are more likely not to fall for the fraudsters’ lies. Educating your employees even about simple topics such as the importance of strong passwords or recognizing suspicious emails can significantly reduce the risks.

4.    Implement cybersecurity strategy

Unfortunately, in this time and age, every business needs to accept that they might be targeted by a fraudster or scammer. To ensure they don’t become victims, they need to implement cybersecurity tools that will help them defend their business from the dangers, such as device fingerprinting, KYC, or email lookup tools.

5.    Backup, backup, and backup.

Backing up your data is extremely important when dealing with various fraudulent activities and any other kind of emergency that might cause data loss or corruption. It allows you to continue with your standard business practice instead of wasting time and money trying to recover the lost data.

Fraudsters constantly come up with new ways of exploiting businesses or their customers, and by following these steps, you will have a chance to stay one step ahead of them and protect your business.

 

About the Author

Gergo Varga has been fighting online fraud since 2009 at various companies – even co-founding his anti-fraud startup. He’s the author of the Fraud Prevention Guide for Dummies – SEON Special edition. He currently works as the Senior Content Manager / Evangelist at SEON, using his industry knowledge to keep marketing sharp, communicating between the different departments to understand what’s happening on the frontlines of fraud detection. He lives in Budapest, Hungary, and is an avid reader of philosophy and history.

 

 

Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.

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