Unfortunately, there is no silver-bullet measure that will keep business owners safe from every form of payment fraud they may encounter. But there are several measures that can help them identify vishing, business email compromise, chargeback scams and any other form of fraud attempt early and limit the damage that could be done their business.
The single most effective fraud prevention measure a business owner can undertake is educating their employees about what to look for. The more knowledgeable that employees (from the C-suite to the front-line customer support staff) have about scams, the more likely they are to identify payment fraud attempts before they happen.
Verification is another important element. If changes are being requested to established payments processes – such as methods, timelines or otherwise – make sure to reconfirm with the receiving party through an alternate, established communication method. For example, if a request for an urgent payment was received via SMS (aka smishing), ensure to confirm with a trusted contact at the requestor’s organization by phone.
Lastly, if a payment fraud attempt is caught AFTER payment has been issued – act quickly. Notify your financial institution, the Canadian Anti-Fraud Centre and your local police department as soon as you can. Each can help you take steps to try to recoup any potential losses and catch the fraudsters before they target others.
Working with financial partners that can provide you with the tools you need to stay on top of your accounts and transactions can help you to identify any out-of-the-ordinary activity early. For instance, HSBCnet Mobile Banking allows you to access recent transactions and account balances at any time right from your mobile device, meaning you can keep a close eye on cash flow in real time. Services like HSBCnet also feature Multi or Dual Authentication (2FA) to limit the potential for bad actors to access your accounts, as well as Dual Transaction Control that requires two separate users to authenticate a transaction before it’s executed. Account Reconciliation and Positive Pay – two products available in HSBC’s cash management solutions – can also help the fight against cheque fraud by providing checks-and-balances before it’s too late.
Contact HSBC to find out more about how your business can fight back against payment fraud.