While many entrepreneurs may think that fraud is a secondary concern, Hartford Business Journal contributor Michael LaBella says that working to prevent it should be a priority.
First of all, LaBella says small business owners should use only secure online banking systems to manage their money, and regularly check their accounts to see if anything looks amiss.
When working online, he says business owners should also be careful to watch out for electronic scams such as phishing, which can steal private data and cause general liability concerns.
Sensitive financial documents and statements should also be kept in a secure location, he says, whether they are online or paper files, so information can’t leak out. Any paper files being thrown out should first be thoroughly shredded. Business owners can reduce this hassle by opting for online paperless statements and bills.
Fraud represents a significant concern for many small companies. A report last year from the Association of Certified Fraud Examiners found that small businesses, rather than their larger competitors, were more vulnerable to fraud.
