You take careful measures to protect your business facility, installing alarms and other security devices to keep the operation safe. But what are you doing about guarding your business against the significant but intangible threat of bank fraud?
“Every time you write a check, your information is out there, available for the general public,” says Keith Gottschalk, executive vice president of operations and IT at Old Second National Bank.
Counterfeit checks, Automated Clearing House (ACH) fraud and criminal wire activity are hotspots in the bank fraud arena, and every businesses needs to understand them. Economic conditions certainly contribute to an increase in bank fraud activity, but so does exposure through computer networks that become open doors when antiviral software and firewalls are not in place.
To protect your bank accounts, reputations and credit rating, take advantage of your bank’s security offerings and implement internal checks and balances.
“We see a lot more fraud involving small businesses and online banking, but there are tools you can use to prevent a hacker from violating your accounts,” Gottschalk says.
Smart Business spoke with Gottschalk about how businesses can take proactive steps to improve security.
What are the biggest challenges businesses confront when working to prevent fraud?
General awareness is key, and bank fraud simply isn’t top of mind at many businesses, especially in smaller organizations where an owner is wearing many hats and focused on day-to-day operations. Businesses without internal IT departments are often exposed to security risks without realizing it.
Also, there is a general belief that the bank is protecting businesses against all fraud. And while banks certainly have tools to help prevent fraud and notify businesses when suspicious activity occurs on an account, it is ultimately the business’s responsibility to serve as watchdog. Businesses must recognize that fraud is out there and it’s happening every day to organizations like theirs. A business can protect itself by simply taking the time to put safety measures in place.