Occupational fraud is an expensive problem for businesses. In its 2016 Report to the Nations, the Association of Certified Fraud Examiners reports that the median loss from a single case of occupational fraud is $150,000. A typical organization will lose 5% each year to fraud. With this in mind, MidSouth Bank has compiled six tips that will help any business guard against fraud.
First, used a dedicated computer for banking. Computers used for a variety of online activities, including social media, are more vulnerable to hacking.
Second, have a password policy. Everyone in your firm should change their passwords regularly, at least every 90 days. Also, passwords need to be strong. This means using at least eight characters, including at least one uppercase letter and one special character. And don’t use the same password for everything.
Third, educate your employees. Your staff may be your biggest vulnerability to fraud, but they are also your first line of defense. Hold regular security training sessions for everyone, new hires and seasoned staff alike. You should have guidelines for your employees covering the handling of confidential data.
Fourth, consider pre-employment background checks. This is a good general practice. It is especially important in the case of employees who will be handling money, financial data, or other sensitive material.
Fifth, focus on security. Stay ahead of security requirements and secure your IT infrastructure. The seemingly endless data breaches that keep making news should put everyone on notice to protect their company’s reputation and financial situation. The cost of fixing these problems makes it imperative that a business should have a solid firewall to protect data and other security software to detect and remove spyware and malware. Regular backups are a necessity.
Sixth, insure your business against fraud. Fraud and cybercrimes happen, but a business can purchase insurance to protect itself from financial loss. Find out how your bank will help you in the event of a problem.
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