Protecting your business is crucial. With approximately 79% of organizations reporting attempted or actual payment fraud activity in 2024*, business fraud schemes are becoming more frequent and increasingly sophisticated. First Mid offers fraud detection tools, a dedicated monitoring team, and instant alerts to help you respond in real time.
Here are three tips to help you enter the new year feeling confident and prepared to help prevent fraud that could impact your business.
1. Leverage Technology & Monitoring Tools
Control over your transactions is key. Services like Check or ACH Positive Pay help businesses identify and respond to suspicious activity, often within 24 hours, in accordance with National Automated Clearing House Association (NACHA) rules.
Positive Pay works for businesses of all sizes — from small local shops to larger regional manufacturers. It flags checks or electronic debits that don’t match preauthorized criteria, such as maximum dollar amounts or specific vendors. Businesses can then review and approve or reject flagged items quickly, reducing exposure to fraud.
“Positive Pay is like inexpensive insurance for businesses, protecting their livelihood and financial stability,” says Ryan Adleman, Treasury Management Officer at First Mid. “When combined with First Mid’s experienced Treasury Management team, these services provide the confidence and protection businesses need to stay secure. Our hands-on team is in the trenches with our customers, helping them set up users, review transactions, and fully leverage their fraud protection capabilities. It’s a partnership that keeps businesses safe and positioned for long-term success.”
Understand more about business check fraud and best practices to help reduce your exposure.
2. Be Proactive, Not Reactive
Being proactive adds an essential layer of protection beyond technology. Consider these steps:
- Conduct regular risk assessments to identify potential vulnerabilities.
- Limit employee access to sensitive information to reduce opportunities for fraud.
- Verify vendors and partners before making payments to avoid scams, like fake invoices or duplicate billing.
3. Create a Fraud-Aware Culture: Educate Employees
Regular training helps employees recognize scams and avoid putting their business at risk. Take advantage of fraud information resources to keep the conversations going about new and prevalent threats.
“Fraud is a persistent and growing threat for all businesses,” says Adleman. “We’re seeing more and more attempts every week, from stolen account information to intercepted mail and sophisticated email hacking. Our goal is to help our customers stop fraud before it happens.”
Prevent Fraud Before It Happens
Using advanced technology, proactive business procedures, and continued employee education can significantly reduce your risk of fraud. Reach out to your local First Mid representative to discuss solutions tailored to the needs of your business.
Sources
*AFP