Small business owners are always looking for ways to protect themselves from online fraud. A multi-tiered protection strategy allows you to accept online orders and protect your financial data at the same time. Here are tools you can use to build a cohesive fraud protection program.
Table of Contents
Accept Digital Currency
Cryptocurrency is one of the most secure payment methods you can use or receive. Digital currency purchased through OKX crypto exchange includes a unique identification code for each transaction. This digital wallet protects your cryptocurrency. The digital coin exchange is responsible for authorizing the purchase based on the transaction code provided by the customer.
Separate Transactions
Businesses become victims of fraud when they fail to monitor credit card and bank statements. If one fraudulent transaction is approved, hackers can siphon money indefinitely. Keep business and personal transactions separate. Business bank accounts and credit cards should be used for business transactions only. This allows you to review monthly statements more effectively.
Nowadays companies opt for online business banking accounts like Novo to manage their finances safely and securely. Such bank accounts can be integrated into other platforms so businesses can check all finances from one account.
In addition to your business expenses, employees should submit receipts for purchases applied to the business credit card. Be sure to reconcile receipts to the bank statements monthly. Corporate credit cards allow you to monitor individual spending and set purchase limits.
Use Credit Card Protection
Online credit card transactions have built-in protection to ensure the buyer is the credit card owner. Make sure that vendors use similar protection to keep your banking information protected. The three most common credit card authentication tools are:
- Some credit card companies offer an option to request a secure password to approve the transaction. This protects you from an unauthorized purchaser placing an order.
- All credit card companies provide a three-digit verification code on the back of the card. The credit card company declines the transaction if the verification code does not match their records.
- Credit card companies may require address verification. From zip code to full mailing address comparisons, purchases are authorized when the information on file with the credit card company matches what the customer enters.
Strengthen Password Requirements
Train employees on the importance of maintaining password security. Deactivate login credentials for former employees immediately. Passwords should be changed regularly and be complex. Consider requiring a minimum number of characters, along with upper and lowercase letters and numbers. While employees may find this cumbersome, it protects an employee’s workstation from becoming an access point to your company’s financial data.
Monitor Online Orders
Establish an auditing system that requires manual authorization for orders that meet specific criteria, such as order frequency or total price. This protects your customers from incorrect or fraudulent orders. A simple follow-up phone call allows you to verify the transaction details and provides excellent customer service, helping you retain a valued customer.
Know Your Vendors
When you review your expenses, make sure to look at the supplier. Request clarification for any unfamiliar orders. As your business grows, consider implementing purchase order approval based on the value of the order.
Protecting your business from fraudulent orders and purchases is an important priority in today’s technological environment. With a clear plan, you can keep your business, customers and suppliers protected.
About Carson Derrow
