BY PETER MEYER
NYC Market President at TD Bank, America’s Most Convenient Bank®
Attention Queens small business owners – according to a 2010 report from the Association of Certified Fraud Examiners (ACFE), incidents of occupational fraud are 31 percent more likely to occur at small businesses as opposed to larger companies. More alarmingly, a recent TD Bank Small Business survey found that although nearly three-quarters of small businesses polled are incorporating some steps to protect their businesses, only one percent of respondents cite falling victims to fraud as a top business concern, even as cases of criminal fraud are on the rise.
Here are five proactive steps you can take immediately to help prevent fraud.
Manage finances using secure online banking.
Banks and other financial institutions are at the forefront of developing and using security measures that help ensure financial information remains confidential and safe.
Online banking is a secure and essential tool for any small business owner. The benefits of this useful service include 24/7 access to real-time information, account transfers and payment management. You can easily schedule and manage your payments, submit remittance information, and have an audit trail of all transactions.
It’s important to check your account activity regularly. Having instant access to your history helps you closely monitor your account for any discrepancies. If you see any, contact your financial institution immediately.
Protect computer systems and practice online awareness.
Being complacent about cyber protection can lead to the compromise of critical information and detrimental consequences for your business. Every computer at home and in the office should have installed and regularly updated firewalls and anti-virus software.
While conducting business online, be aware of “phishing” ? an electronic scam that attempts to obtain confidential personal or financial information from its target. It takes the form of a fake message, usually an email, which appears to be from a financial institution or service provider. While some emails are easily identified as fraudulent, including some containing enticing headlines, others may appear to come from a legitimate address. Never reply to any email or pop-up message that requests you to update or provide personal information.
Safely handle sensitive documents and financial statements.
The web isn’t the only place where thieves can steal valuable information. Some of your own employees and outside parties can steal important mail, credit card information or checks and commit fraud.
Technological advances have even put photocopiers at risk. Most photocopiers built since 2002 contain a hard drive that stores every image scanned, copied or emailed. When a business sells or upgrades their copier, the machine is usually cleaned up and reconditioned, but often times the hard drive is left intact and isn’t scrubbed.
Once resold, it’s possible for anyone to simply pop out the hard drive, and access and sell confidential information, such as income tax and bank records, social security numbers, and birth and medical records.
Obtain fidelity insurance.
Crime and fraud-related losses generally aren’t covered by property insurance policies. As a result, it’s important to protect money losses from workplace fraud.
Fidelity insurance protects your business against criminal acts such as robbery, embezzlement, forgery and credit card fraud. Liabilities secured under this type of insurance usually include money loss coverage (burglary or theft) and employee dishonesty (embezzlement and forgery).
Incorporate appropriate checks and balances.
Every small business owner should perform an internal review and assessment of company finances on a monthly basis. Make sure payment amounts match all invoices and check for any missing documents. Running random audits or having a third party audit your books once a year will show your employees you are serious about fraud and deter them from committing deceptive acts.
IVisit our Online Security Center for more tips at www.tdbank.com/security.
Peter Meyer is the NYC Market President at TD Bank, America’s Most Convenient Bank®
