You are an expert at your business, but what do you know about fraud prevention? Criminals target small businesses because they know you don’t have the resources to monitor for fraudulent activity. The first line of defense is knowing the most common types of fraud.
How hard does fraud hit small businesses?
1. Check Fraud
Checks are the most popular type of non-cash payment, making them an easy target. In fact, 73% of American companies were targets of payment fraud. Timing is critical in identifying fraudulent check activity on your accounts.
Types of potential check fraud:
2. ACH Fraud
ACH fraud is the unauthorized funds transfer that occurs in a bank account. Fraudsters use your account number and bank routing number to make a payment or purchase.
Common ACH Fraud
3. Online Banking Fraud
Hackers can access your online banking to wire or ACH funds, add payees to bill pay from anywhere.
Online banking fraud happens all too often, adding to the overall loss endured by small businesses. According to the Association of Certified Fraud Examiners (ACFE), businesses lose an average of 5% of their yearly revenue to fraud. View these common types of online fraud schemes.
4. Email Hack
Imagine you receive an email from a known vendor asking you to wire payment to a new bank. What do you do? Never assume the email address is correct. Always call the person from the number you have on file, not the number on the email.
The FBI reports there are 17,642 victims of email scams” tar, resulting in $2.3 billion in losses.
WHY CRIMINALS TARGET SMALL BUSINESSES
You're an expert in your business. But fraudsters know small businesses
PREVENTION THROUGH KNOWLEDGE
Criminals stop at nothing to access your accounts. It’s up to you to protect your information and staying knowledgeable about fraud is your best defense. Enterprise Bank & Trust can help. Here are some best practices every small business should consider.
Check Fraud Prevention
Electronic Payment (ACH) Fraud Prevention
Online Fraud Prevention
General Fraud Prevention
Know your employees
Know your vendors
Keep account authorizations up to date
Know these security terms
To help you identify potential fraud risks, visit our Security Glossary to learn what Account Recon, Corporate Account Takeover, Friendly Fraud, Money Mule and more terms means.
To learn more, contact your Enterprise Bank & Trust representative today.