How Do I Help Protect My Small Business from Fraud?

How does fraud impact small businesses? What are the most common types of business fraud? And how can a business owner protect their business from fraud? With business fraud on the rise, it’s becoming not a matter of if a business will be impacted – but when.

In this episode of Financial Cents, Katherine Cobb, senior vice president, manager of the Cybersecurity Operations Center at Zions Bancorporation, joins host Brent Cannon, executive vice president, director of community banking at National Bank of Arizona, to discuss the impact of business fraud, how the most common types of business fraud work, and what business owners can do to protect their businesses. Because according to Katherine, small businesses make ideal targets for fraudsters since they often don’t have the resources or controls in place to protect themselves.

Many of the most common types of business fraud we see today are designed to exploit our reliance on digital communication. Business email compromise is where a fraudster impersonates a business’s vendor and sends the business updated payment instructions so the business wires their money to the fraudster’s account. Another common type of fraud is CEO fraud, which is when a fraudster impersonates the CEO or other company executive and emails a low-level employee with instruction to wire money to the fraudster. Other types of fraud that are prevalent today include phishing and spearphishing, vishing, smishing and check fraud.

Regardless of how the fraud is perpetrated, there are things businesses can do to protect themselves. “The biggest thing I would say is for business owners put a callback system in place along with a dual control system,” says Katherine. “That way, any payment changes are verified directly with the vendor and there’s always a second employee who can act as a check and balance.” In addition, banking products like Check Positive Pay(1) can also help business owners protect themselves.

Financial Cents is hosted by Brent Cannon and features insightful interviews and discussions with bankers at National Bank of Arizona. Based on decades of banking experience, Financial Cents provides the insights you can only get from a friend in the business.

Subscribe from your favorite podcast platform by visiting: https://www.nbarizona.com/financial-cents/.

Interested in learning more about how we can help you mitigate business fraud? Contact a banker: https://www.nbarizona.com/personal/schedule-appointment/

All price references and market forecasts correspond to the date of this recording. This podcast should not be copied, distributed, published or reproduced in whole or in part. 

The information contained in this podcast does not constitute research, recommendations, representations or warranties as to the accuracy or completeness of the statements of any information contained in this podcast and any liability from Zions Bancorporation, N.A. or its divisions (including direct, indirect, or consequential loss or damage) is expressly disclaimed. The views expressed in this podcast may not be those of Zions Bancorporation, N.A. or any of its divisions. Zions Bancorporation, N.A. is not providing any financial, economic, legal, accounting or tax advice or recommendations in this podcast. In addition, the receipt of this podcast by any listener is not to be taken as constituting the giving of advice, investment or otherwise, by Zions Bancorporation, N.A. to that listener, nor to constitute such person a client of Zions Bancorporation, N.A. See your banker for Treasury Management product details and schedule of fees. Certain Treasury Management Services may require credit approval; contract may also apply. Must be enrolled in Positive Pay. Terms, conditions and fees apply

Check out more content Financial Cents content by visiting: https://www.nbarizona.com/financial-cents/