Five Ways to Reduce Your Business’ Fraud Risk

Fraud is one of the fastest-growing threats facing businesses today. From phishing emails to check fraud and account takeovers, fraudsters are constantly finding new ways to exploit weak points.

The good news? Many fraud losses can be prevented. By using the right tools and knowledge, businesses can significantly reduce their risk. Here are five practical ways to protect your business from fraud.

1. Identify Fraud

Fraud doesn’t always look obvious. In fact, many scams are designed to appear routine. Think an email from a vendor requesting updated payment information or a message that looks like it came from your bank.

Common types of business fraud include:

• Phishing or spoofed emails
• Check fraud
• ACH or wire transfer fraud
• Account takeover
• Vendor or payroll scams

The first line of defense is awareness. Business owners and employees should understand common red flags, such as urgent requests for payment, unexpected changes to account details, or messages asking for sensitive information.

Click here to read more from the Better Business Bureau on Business Scams.

REMEMBER: First Guaranty Bank will never ask for passwords, PINs, or one time security codes by phone, email, or text. If someone does, IT’S A SCAM!

2. Improve the Way You Work

Strong internal controls can and has been proven to reduce fraud risk. Even simple safeguards can make a big difference. Don't forget the simple things like looking before you click and creating strong passwords.

Consider implementing:

• Dual controls for payments and transfers
• Regular account reviews to spot unauthorized activity early
• Written procedures for handling payments, vendor changes, and financial requests

Fraud often succeeds when processes are informal or inconsistent. Creating clear procedures and sticking to them helps protect your business and your employees.

3. Use Your Resources

Government agencies offer free, reliable tools to help businesses prevent and respond to fraud. These resources are especially helpful because they are constantly updated as fraud continues to evolve.

Government sites include:

• FTC.gov – Guidance on scams, identity theft, and reporting fraud
• SBA.gov – Small business fraud prevention and cybersecurity tips
• CISA.gov – Cybersecurity best practices and alerts

Using .gov resources can help you stay ahead of trends, educate your team, and know what steps to take if fraud does occur.

4. Train Your Team

Your employees are one of your strongest defenses or conversely, one of your biggest vulnerabilities. Regular training helps ensure everyone knows how to spot suspicious activity and respond appropriately.

Interested in strengthening your team's fraud awareness? Email [email protected] to learn more about how you can bring fraud information and other helpful financial seminars to your team!

5. Add Multi-Layer Protection with Technology

Technology plays a critical role in fraud prevention. Today’s digital banking tools can add multiple layers of protection to your accounts.

Tools that may help reduce fraud risk include things like:

• Account alerts for unusual activity
• Positive Pay and ACH filters
• Multi-factor authentication

Click here to visit the FGB Fraud Center to learn more about how we help recognize fraud.

Fraud prevention isn’t a one-time task. It’s an ongoing effort. By staying informed, building strong processes, training your team, and using the right tools, you can significantly reduce your business’ fraud risk.