How small business owners can help prevent fraud

(NC) From coast to coast, Canadian small businesses support their communities with goods, services and jobs, strengthening the economy. But they—and those they support—are under increasing threat from financial fraudsters.

According to a report from the Canadian Federation of Independent Business (CFIB), 50 per cent of Canadian small businesses report experiencing either an attempted or successful fraud attack.

Between phishing, malware, business email compromise, social engineering and more, fraudsters have developed a variety of ways to gain information and access to businesses, with the goal of stealing money.

For Piraveena Tharmalingam, a Vice President in Canadian Business Banking at TD, protecting a business from fraud is an important part of meeting financial goals. There are also steps owners can take to make their businesses more resilient to fraud. She shares five:

1. Don’t assume your company's email is secure. While most of us use email all the time, it can be exposed to unsecure networks, and vulnerable to compromise and manipulation. If you receive an email asking for sensitive information, requesting updated payment details and banking information or attempting to redirect funds, it's a good idea to validate the request by calling the sender at the number they have on file, as a precaution.
2. Use available security tools. Most financial institutions offer a wide array of security features. Some banks, like TD offer tools such as dual authentication and transaction limits, which can help keep a company's finances safe. Talk to your bank about the security features they offer and take advantage of them.
3. Be careful which links you click. Faked, or “spoofed,” emails and fraudulent websites can infect your system with malicious software to steal login credentials or damage files. Always validate that sender email addresses are legitimate and never open attachments or links from unknown senders.
4. Reconcile accounts regularly. It's a best practice to review and reconcile your business accounts regularly—daily if possible. This can help you spot unfamiliar transactions quickly and potentially stop them.
5. Prepare your employees. Encourage employees to think critically and ask questions. Make sure any employees with access to online banking get training on common scams and regularly test their knowledge to identify any gaps.

While there’s no one-size-fits-all solution to preventing fraud, being aware and prepared is always prudent. When owners, employees and business partners work together and look out for each other, it helps make businesses and communities safer from fraud.