Small Businesses May Be Too Confident about their Ability to Detect Fraud

Fraud Prevention Month may have ended, but your efforts to protect yourself and your business from fraud should not. In 2015, fraud cost Canadian small businesses on average $6,200. One in five businesses were victims of fraud and only eight percent of small businesses recovered full financial costs from it.

Overconfidence puts businesses at great risk for fraud as they are not as likely to be vigilant when encountering suspicious activity or upgrade the fraud prevention and security tools they use to protect their computers. We offer the following three tips to improve fraud prevention measures for your small to medium sized business:

  1. Use a comprehensive fraud prevention tool provided by your credit card processors, to secure any online financial activity you perform for your business,
  2. If you deal with cash, read the Bank of Canada’s guidebook on Canadian polymer bank notes as there have been reports of counterfeit Canadian currency being circulated in western Canada,
  3. Stay informed about recent trends or reports of fraudulent activity so you are prepared and ready in the event of fraud attempts on your business. The Canadian Anti-Fraud Centre provides tips on how to avoid scams that specifically target businesses.

In addition, as a business, you process and store a lot of client information that is very valuable to fraudsters. It is important that you put in place effective security measures, not just for Fraud Prevention month, but all-year-round to protect your client’s data.