Payment fraud is one of the most crucial issues for most entrepreneurs because fraudulent activities can expose a business to costly financial damages. This element enables a dishonest individual to make a transaction with fake details, which robs the victim of money. In addition, if a company doesn’t protect itself from these abusive activities, its banking partners may label its account as ‘high risk’ and add costly processing fees.
Fraudsters may attempt payment fraud in multiple ways, such as phishing attacks, identity theft, advanced fee and wire transfer scams, and merchant identity fraud. Aside from these, fraudsters can also commit refund fraud where they place an order, receive the goods, fraudulently claim to have not received it, and file a refund claim.
If organizations stay vulnerable to these possible attacks, they have to deal with intensive customer complaints and fraud reports that will ruin their reputation. Therefore, organizational leaders must actively end these fraudulent activities to protect the stability of their businesses. To do this, they must prioritize payment fraud and refund abuse prevention.
In this article, you’ll learn four strategies for safeguarding your company from payment abuse and fraud. Read on.
Protect Your Bank Accounts
Since your debit and credit card accounts are the most common areas of fraud for all businesses, this method must be on top of your list. If you haven’t established separate bank and credit card accounts, you must do it now so potential hackers won’t have easy access to both accounts. Then, you must evaluate your bank’s security systems for digital banking to ensure that essential elements like automatic logout are immediate and available.
If possible, you may consider partnering with your bank to prevent unauthorized transactions. Communicate with your banker about available programs, which provide automatic notifications once an employee spends over a certain amount. Then, develop a well-monitored reimbursement policy that dictates what out-of-pocket purchases each staff can make on behalf of your organization.
Conduct Employee Background Checks
The main purpose of employment background investigations is to enable employers to assess an applicant’s previous job experience. This activity helps the company determine possible hiring risks that might affect the safety of the existing employees, which could affect the reputation of the business. As you cross-check your applicants, you can identify if they’re being truthful to their resumé—an essential value each staff must have.
If you don’t have sufficient financial and human resources to conduct this activity, you may consider outsourcing someone from an employment verification company. These professionals will help you gather reliable information about your applicants so they can accurately determine these details using various methods. They will use education and professional license analysis, criminal record checks, and employment verification.
Invest In A Secure Entry System
Protecting your organization from payment abuse includes providing security measures and implementing proper access control systems. That said, you need solid protection systems in place so your team can instantly determine both technological and physical threats. With high-quality security access systems, you can gain consistent protection for the staff, confidential business data, and valuable assets—eliminating the risk of fraud.
These access control systems must include video surveillance, proximity cards, alarms, biometric scanners, video intercoms, and pin codes. Once you enable this security method, you can track card clocks to quickly resolve timekeeping problems, which may involve employee tardiness and low productivity. As a result, these active tracking and monitoring processes can prove valuable evidence about a fraudulent event regarding payment abuse.
Invest In Insurance Policies
While these various precautionary measures can help you from protecting your finances and other organizational assets, no measure is still foolproof. Consequently, you must take advantage of having insurance so you can actively protect your company from fraudulent activity, may it be within and outside your business premises. Thus, you may consider investing in an identity theft insurance policy to mitigate loss should this attack occur.
While this element won’t be able to completely prevent an attack, you can immediately return to day-to-day business processes without receiving a destructive impact. Depending on the inclusions of this policy, this tool can report the issue to creditors and quickly reimburse you for financial assets taken. Likewise, you must check with your banking provider if they’ll be willing to assist you once your business card gets compromised.
As an entrepreneur, you must actively invest in protecting your organizational assets. This way, you can still sustain your business processes. That said, you should consider following these four strategies so you can safeguard your company from any form of payment fraud and abuse activities. As a result, you can ensure that you consistently meet the demands of your customers, which helps you expand your organization.