For most business owners, managing fraud has become a growing necessity. In fact, mitigating risk and safeguarding your business’s financial health is something you can’t afford NOT to do.
However, according to our 2024 Economic Survey, 10% of business owners plan to reduce their spending on risk mitigation and fraud in hopes to sustain or improve their bottom line. Pressing issues like rising costs and inflation remain top of mind, with good reason. We believe fraud management is one area that deserves equal attention and should not be overlooked. Why? Because it can have a significant impact on the financial health of your business. By stopping fraud before it happens, you can avoid unnecessary financial losses, stay ahead of rising expenses, and safeguard your bottom line.
Why Fraud Management is So Important
Fraud can affect businesses of all sizes, and the financial consequences can be far-reaching. It’s not just the direct losses you need to consider—there are also potential legal costs and the time lost dealing with the aftermath. Implementing the right fraud management strategies can help protect your business and prevent those losses from ever happening.
According to the survey, 43% of businesses are enhancing their fraud and cybersecurity tools this year. If this is an area you’ve not considered investing in, or perhaps even cut out of your budget this year, you could be putting your business at risk. To help you protect your finances from the real threat of fraud, we’ve put together a few ideas on how you can strengthen your defenses and protect your business’s financial well-being.
Actionable Steps for Business Owners
Protecting your business from fraud doesn’t have to be overwhelming. Here are some simple, effective steps you can begin implementing today to reduce risk and protect your business:
Regularly review your fraud management processes. Are there gaps where fraud could slip through? Updating your systems to include solutions like Positive Pay, which automatically verifies checks presented for payment against those issued, can close those gaps. This service flags any discrepancies and stops fraudulent checks before they clear, protecting your business from unauthorized payments.
Leverage Your Bank’s Fraud Solutions. Consider using tools like Security Tokens to protect your digital banking activities. These tokens generate unique, one-time passwords, adding a critical layer of protection against cyber threats.
Additionally, First Citizens National Bank offers Approvals and Controls, which provide multi-level oversight for payments and transfers. By setting up these controls, you can ensure no single person has unchecked access to your business’s finances, helping prevent internal fraud and reducing the chance of costly errors.
Train Your Employees. Your employees are your first line of defense. Regularly train your team on recognizing potential fraud, handling sensitive information, and identifying scams. An informed workforce can help you catch threats early, before they turn into bigger problems.
Monitor Your Accounts Regularly. Set up automatic alerts for unusual activity and make a habit of reviewing your accounts frequently. The faster you catch suspicious transactions, the quicker you can act to prevent or minimize losses.
A Smarter Way to Protect Your Bottom Line
Fraud management is critical for preventing theft, protecting your business’s financial health and giving you peace of mind. While no fraud prevention program can guarantee that fraud won’t occur, implementing a variety of fraud prevention measures reduces your risks, keeping your business’s hard-earned money where it belongs.
Take control of your fraud prevention efforts today by exploring First Citizens National Bank’s range of solutions here. From Positive Pay to security tokens and approvals and controls, these tools are designed to protect your business from fraud and help you focus on growth, not risk.
