Every year, businesses across the country lose billions of shillings to fraudsters. In a worrying trend, criminals are adapting to the changing times, and it’s safe to say that even the most technologically advanced security measures your business may have taken to protect itself are not foolproof.
Therefore, it is crucial to stay up to date – if not ahead of – the fraudsters and protect your business against potential losses that may arise. Here are some tips that may come in handy.
Train your employees to detect and report fraud
Your employees are probably your first line of defense. Consequently, it is important to routinely train them to identify suspicious emails or other security threats and respond accordingly. Remember, your security systems are only as strong as the weakest link. All it takes is a lapse by an employee for a fraudster to gain access to confidential information that they can use to defraud your business.
You should also consider employee background checks and review the number of staff who can authorize transactions on behalf of your business.
Have an incident response plan in place
Sometimes, instances of fraud may be reported by an employee, and that requires action. A solid response plan should have four components: preparedness, detection, containment, and post-incident review. This will help seal existing loopholes and ensure that no incident slips away.
Consider insuring your business against fraud
Taking out a fraud insurance policy is essential for your business. Sometimes, insurance may be an inside job, and the security systems may not prevent that. Having a cover for such cases could be the lifeline of your business.
Take decisive action against any form of fraud
Time is of the essence if you have been defrauded, and you need to take action as soon as it happens. While companies shy away from reporting fraud incidents due to fear of a tarnished image, it is advisable to consider all the legal options at your disposal before making a final decision.