by Pete Zeiser
Fraud is a bigger threat to businesses than ever before. A staggering 80% of U.S. businesses were targeted for payment fraud in 2023, a 15-percentage point increase over the previous year.* So how can you protect your business?
First, educate your team. Make sure employees are aware of common scams, such as phishing emails, smishing (SMS text message scams), and fraudulent invoices, and understand how to spot them. Teach them to verify the sender’s email address, avoid clicking on suspicious links, and confirm the legitimacy of requests directly with the supposed sender.
Strong security protocols are also essential. Monitor your business accounts frequently for unauthorized transactions, and set up alerts to detect unusual activity. Implement multi-factor authentication, update passwords regularly, and ensure your systems are protected with the latest security software.
Securing your payment systems is another critical measure. Ensure compliance with industry standards and conduct regular audits to identify vulnerabilities. Establish verification processes to confirm the legitimacy of payment requests. At Midwest BankCentre, we also offer fraud prevention tools like ACH Filter, which gives you advanced control over ACH transactions posted against your account, and Positive Pay, which allows you to regulate which checks are paid from your business checking account.
If you receive a suspicious message from someone claiming to represent your bank, do not respond. Call your bank immediately. Most banks, like Midwest BankCentre, will never request or verify personal information via phone or email. By staying vigilant and working with your bank, you can protect your business from fraud and secure its future.
*2024 AFP® Payments Fraud and Control Survey Report
Answers provided by Pete Zeiser, President - Chesterfield Commercial at Midwest BankCentre. He can be reached at 314-633-6762 or pzeiser@midwestbankcentre.com.