5 Ways to Protect Your Business Money Against Financial Fraud

With technological advancements, Cybercriminals are finding innovative tricks to steal valuable data and money from businesses thus protecting your business against financial fraud is a matter of serious consideration. Credit bureau Experian conducted a survey in 2017 aimed at “The 2018 Global Fraud and Identity Report” stated,72% of businesses reported that fraud has become a rising issue in the previous twelve months. Fraudsters are attacking businesses with malicious software and infected emails, clicking on them causes businesses to lose their credentials and transfer funds to hackers’ accounts.

Combating financial fraud is a mutual obligation of businesses, employees, and banks. Financial institutions can educate businesses about the applications or software that provides safe transfer and withdrawals whereas businesses can explain different modes and sources of fraud to employees to circumvent every possible fraudulent activity. To stay on the top of scammers’ game, here are five ways to protect your business money against financial fraud.

Implement Checks and Balances to Ensure Financial Stability

Employing financial checks and balances on a weekly or monthly basis deters financial fraud. Make sure transactions have properly recorded and matched to the invoices. Financial checks ensure that employees cannot manipulate financial transactions. They detect both internal and external frauds, reduce transactional errors, prevent misconduct and avoid manipulation of financial figures.

Install Up-To-Date Firewalls and Antivirus to Protect Computer System

Disregarding cybersecurity and computer system protection has cost a fortune to many businesses. In this era of digitalization, it is easy to fall victim to financial fraud. Businesses should make sure to install the latest firewalls and antivirus to avoid being attacked by phishing schemes that attempt to breach confidential data. Set up a strict protocol that requires logins and passwords making it difficult for scammers to access data. Make your systems difficult for hackers to crack by enabling employees to change their passwords right after 60 to 90 days and backup files to access them offsite. 

Keep Accurate Records and Conduct Internal Audits Regularly

Having regular internal audits detects irregular activities and uncovers signs of fraud. Any irregular withdrawal, transaction, or unusual activity can be identified with audits. Work closely with auditors and accountants to keep accurate records and discourage financial fraud. To keep your business thriving, and ensure happy clients, companies should collaborate with their bookkeepers to make sure documents are up-to-date and transactions are in order.

Use Secure Bank Accounts to Avoid Unapproved Transactions

Business bank accounts are one of the most secure ways to manage business finances. Banks provide access to information in real-time and manage transfers and payments. Business owners should open a bank account in the country where they operate to track all of their account transactions. The companies running their businesses in Hong Kong must consider the services and packages offered by the best banks there to check their multicurrency account activity regularly. Immediate access to transaction histories can provide insights regarding discrepancies.

React Quickly To Suspicious Activities

Be proactive in observing strange activities, infected pop-ups, malicious emails, and spoofed attachments. Put a halt on the online transactions if any malevolent activity occurs. Report it to your financial institution, and remove the affected system. Sometimes malicious emails come with appealing headlines that intrigue the viewer to click them resulting in hacking.

Final Thoughts

Fraud can be highly devastating for any business and can damage the financial standing severely. Financial frauds damage the reputation of a business and prevent potential clients from making purchasing decisions. A company’s brand image dies when it encounters financial fraud, as the prospective investors will hinder investment in the business. However, financial fraud can be prevented by taking precautionary measures. No matter, if your business is already established or taking baby steps, you can save it from falling victims to fraudsters by keeping your computer systems safe, backing up your files, developing a protected entry system, and collaborating with the best banks in Hong Kong.