The idea of fraud can be worrisome, yet many SMEs prioritise growth, innovation and survival over cyber security and fraud prevention due to limited resources. However, this approach leaves businesses vulnerable and at risk of various complications in the long run. So, how can businesses prevent fraud?
The best way to prevent fraud in an organisation is to first be aware of the various types of fraud that your company is at risk of, and from who. From here, you can implement appropriate strategies to prevent fraud from occurring, as well as provide your staff with relevant training and resources to ensure that they’re on the same page.
Read on to learn more about fraud prevention and discover our top five tips for preventing fraud in an organisation.
Types of Business Fraud to Be Aware Of
The types of fraud you can experience in the workplace are quite varied. From cases of accounting fraud and credit card theft to investment fraud and embezzlement, there are plenty of ways that an organisation can become a victim of fraud.
But you’re also at risk of fraud from online sources. Cyber attacks are being evermore sophisticated to the point that even the most technologically literate person might be fooled.
This includes activities such as:
- Email phishing, Fraudulent emails or messages designed to trick individuals into providing sensitive information like passwords or credit card details.Mandate Fraud, Cybercriminals impersonate a company executive or trusted partner to manipulate employees into transferring money or revealing confidential information.
- Identify Theft, Stealing personal information to impersonate someone and gain access to secure systems or financial accounts.
- Payment Fraud Unauthorised use of payment information to make transactions or steal funds from a company or individual.
Where Fraud Can Come From
With business fraud being so widespread and varied in nature, it’s important to understand that it can come from anywhere, including:
- Staff members
- Customers
- Suppliers
- Cyber Criminals
How Can Companies Protect Themselves From Fraud? Our Top Fraud Prevention Tips
Now you know the various types of fraud that a business is at risk of, and where it can come from, it’s important to know how to prevent it. Below you’ll find our top 5 fraud prevention tips for organisations.
Be Sceptical
The general rule of thumb to remember is, if it sounds too good to be true, it probably is. Especially if you weren’t expecting it. In the workplace, a healthy dose of scepticism around opportunities and transactions could save you a lot of time, money and hassle in the long run.
Know Your Business, Suppliers and Customers
Knowing your business inside out can help you to recognise when something isn’t quite right. It’s important that you as a decision maker, and your team thoroughly understand how your business operates and what’s going on in the business so that any inconsistencies are noted and addressed appropriately.
Develop a Fraud Prevention Policy
It’s important to first identify the areas in which your business is vulnerable to fraud before developing a suitable policy to prevent it. This should then be communicated with all staff so that they understand the risks and are aware of best practices.
Take Care Against Cyber Attacks
As previously mentioned, businesses are at an increased risk of cyber attacks resulting in fraud in the modern world. As such, the following should be considered:
- Cyber awareness training for all employees
- Providing suitable fraud prevention resources
- Undertaking vulnerability assessments
- Creating suitable cyber security policies
Get access to free cyber security resources with the NEBRC’s Free Core Membership. Designed for SMEs from all different industries, we take you on a journey to improve your business’s cyber resilience. Learn more and sign up for free today.
Always Report Fraud
If the worst happens and your business falls victim to fraud, it’s important to report it to the relevant authorities. This helps the authorities to find and deal with fraudsters so that it doesn’t happen again.
Action Fraud is the UK’s national fraud and cybercrime reporting centre. You can also report fraud to the police if you know the suspect or they’re still in the area. Call 101 to report a crime or 999 its an emergency
Stay Up to Date With Cyber Security for Business With NEBRC
At NEBRC, we’re a police-led not-for-profit organisation that’s dedicated to your cyber security. We work closely with you to keep your data safe and reduce your risk of cyber attacks. Visit our website to find out more about our Network Vulnerability Assessments, or to find out about our Web app Vulnerability Assessment to protect your website too. Or, why not sign up for our Free Core Membership, designed to provide you with relevant resources and ongoing support to improve your resilience to cyber security threats.