<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=559746057746957&amp;ev=PageView&amp;noscript=1">

The Clearsale Blog

Fraud Screening for Small Businesses: Risks & Resources

Fraud Screening for Small Businesses: Risks & Resources

What small business need to know about fraud screening, risks and resources at PaymentsJournal:

Most small business owners don't expect to become fraud victims and they often don't know which fraud threats to guard against. But criminals know that small businesses usually make the easiest targets, so every small-business owner should have a clear understanding of the fraud landscape. Here are three major types of fraud and how to protect your business. 

Insider fraud risks for small businesses

Insider fraud – – a scheme perpetrated by a company's employees – is what many business owners are most concerned about. It's not the most common type of fraud that small online businesses face, but it does happen and can be very expensive.  

The median loss for a single case of occupational fraud is $150,000, according to 2016 figures from the Association of Certified Fraud Examiners. That figure is accurate for small businesses as well as enterprises, and in more than 8% of cases, the victim companies were also required to pay a fine for allowing the fraud to go undetected.  Those numbers mean SMBs are at disproportionate financial risk from insider fraud like check tampering, payroll falsification, skimming, and simply stealing cash.  

Resources to fight insider fraud 

  •  No matter how few employees your company has, these fraud controls are important:  
  •  Regular reconciliation of your books and payroll records 
  •  A way for employees to report suspected fraud 
  •  Proper employee training 
  •  Random checks of accounts and payroll records  

You may also decide to hire an outside accountant and payroll service rather than letting in-house employees handle those tasks. The Small Business Administration recommends purchasing business fraud insurance to protect you from occupational fraud losses. 

To continue reading please click here.

New Call-to-action

You may also like

How the abrupt shift to remote work could start a wave of account takeover fraud

How the abrupt shift to remote work could start a wave of account takeover fraud

What small business need to know about fraud screening, risks and resources at PaymentsJournal:

International E-Commerce Data Shows Surge in First-Time Online Shoppers

International E-Commerce Data Shows Surge in First-Time Online Shoppers

What small business need to know about fraud screening, risks and resources at PaymentsJournal:

Mobile payments can help during the pandemic, if they keep fraudsters out

Mobile payments can help during the pandemic, if they keep fraudsters out

What small business need to know about fraud screening, risks and resources at PaymentsJournal:

SIM Swapping: How to Protect Against This Emerging Scam

SIM Swapping: How to Protect Against This Emerging Scam

What small business need to know about fraud screening, risks and resources at PaymentsJournal:

ClearSale Partners with Route and Midigator to Help Merchants Protect Revenue

ClearSale Partners with Route and Midigator to Help Merchants Protect Revenue

What small business need to know about fraud screening, risks and resources at PaymentsJournal:

Is Your CNP Fraud-Detection System Confused by Consumer Behavior Now? That Could Damage Your Business

Is Your CNP Fraud-Detection System Confused by Consumer Behavior Now? That Could Damage Your Business

What small business need to know about fraud screening, risks and resources at PaymentsJournal:

ClearSale’s Rafael Lourenco on the impact of COVID-19 on ecommerce

ClearSale’s Rafael Lourenco on the impact of COVID-19 on ecommerce

What small business need to know about fraud screening, risks and resources at PaymentsJournal:

How Holiday-Season Fraud Can Hurt Your Chargeback Ratio in the New Year

How Holiday-Season Fraud Can Hurt Your Chargeback Ratio in the New Year

What small business need to know about fraud screening, risks and resources at PaymentsJournal:

The 13 Fraud KPIs E-Commerce Merchants Need to Know

The 13 Fraud KPIs E-Commerce Merchants Need to Know

What small business need to know about fraud screening, risks and resources at PaymentsJournal:

Want to write
for our blog?

Please review our writers' guidelines
https://www2.clear.sale/press/clearsale-guest-blog-guidelines
and then email guestwriter@clear.sale with your pitch!

Subscribe to our blog