Business fraud is becoming more sophisticated every year. From phishing emails and business email compromise scams to check fraud and unauthorized ACH transactions, companies of all sizes are being targeted.
As a business bank, we’ve unfortunately seen organizations suffer financial losses that could have been prevented through stronger security practices. The good news is that protecting your company doesn’t always require major investments. Even a few proactive measures can significantly reduce your risk.
Here are five effective ways to strengthen your business against fraud.
TOPICS COVERED:
- Train Employees on Cybersecurity Best Practices
- Strengthen Financial and Technology Security
- Secure Your Physical Workplace
- Conduct Thorough Employee Background Checks
- Utilize Positive Pay Services
- Why a Proactive Approach Is the Best Defense
Train Employees on Cybersecurity Best Practices
Your employees are your first line of defense against fraud—but they can also be a point of vulnerability if they aren’t trained to recognize threats.
Business Email Compromise (BEC) is one of the most common and impactful schemes affecting businesses today. Cybercriminals frequently use phishing emails, fake websites, impersonation tactics, and social engineering schemes to gain access to company accounts or sensitive information. Since phishing remains one of the most common cybercrimes reported to the FBI, employee awareness is critical.
Consider implementing:
- Regular cybersecurity training sessions
- In-person or virtual workshops
- Online learning modules
- Simulated phishing tests
- Monthly fraud-awareness emails
- Designated fraud or security officers to oversee training initiatives
At Core Bank, we regularly train and test employees on fraud awareness to help them recognize suspicious activity before it becomes a problem.
Strengthen Financial and Technology Security
Protecting sensitive business, financial, and customer information should be a top priority. Implementing multiple layers of security can help prevent unauthorized access and reduce fraud risk.
Key safeguards include:
- Independently verifying payment change requests, particularly wire and ACH instruction changes
- Dual control approval processes
- Role-based user permissions
- Multi-factor authentication (MFA)
- Real-time account alerts
- Transaction monitoring
- Secure payment platforms
- Strong password policies
- Regular software updates and patching
Multi-factor authentication is especially important because it adds an additional layer of security beyond passwords, making it significantly harder for criminals to access accounts.
Secure Your Physical Workplace
Many business owners focus on digital threats while overlooking physical security.
Whether you operate from a single office or multiple locations, protecting physical assets and sensitive information remains essential.
Consider:
- Automatic door-locking systems
- Employee badge access
- Visitor management procedures
- Security cameras
- Well-lit entrances and parking areas
- Secure document storage and shredding procedures
These measures not only deter theft and fraud but can also help support investigations if suspicious activity occurs.
Conduct Thorough Employee Background Checks
Hiring trustworthy employees is an important part of any fraud prevention strategy. Background screenings can help identify issues that may present risks to your organization, particularly for positions involving financial responsibilities, customer data, or access to sensitive systems.
When developing a screening program:
- Use a reputable background check provider
- Follow all applicable employment laws
- Apply screening standards consistently
- Re-evaluate requirements based on job responsibilities
While many employees are highly trustworthy, this extra step can help reduce organizational risk and protect company assets.
Utilize Positive Pay Services
One of the most effective tools available to businesses today is Positive Pay. Positive Pay services help identify suspicious transactions before funds leave your account. However, timely review of exception items is essential for the service to be effective.
Check Positive Pay
Check Positive Pay compares checks presented for payment against a list of checks your business has issued. If information such as the check number, amount, or payee does not match, the transaction is flagged for review before processing.
ACH Positive Pay
ACH Positive Pay provides similar protection for electronic transactions. Businesses can review, approve, or reject ACH debits before they post to an account, helping prevent unauthorized withdrawals.
Many Positive Pay solutions integrate easily with accounting software, making fraud protection simple to implement without creating extra work for your team. At Core Bank we offer a wide range of fraud prevention tools:
A Proactive Approach Is the Best Defense
No business is completely immune to fraud, but proactive security measures can dramatically reduce your risk.
By:
- Training employees
- Strengthening cybersecurity controls
- Securing physical facilities
- Conducting background checks
- Using Positive Pay services
you can better protect your finances, customers, and reputation.
If you’d like to learn more about protecting your business from check fraud, ACH fraud, or cybercrime, contact our team.
This article was written by Tyrell Velasquez, Director of Financial Crimes at Core Bank (402-898-3368)
