5 Ways to Mitigate the Risk of Fraud

The fraud detection market has grown by well over 50% from 2016 to 2022, and this is certainly with good reason. It transpires that our modern-day digital dependency creates infinite opportunity for scammers, leaving us exposed in both our professional and daily lives.

Needless to say, a lot of the global issues of the day suggest that we are most vulnerable when it comes to our cyber security. Our data is readily available for those willing to take the extra steps to hack and decode. In other cases, it’s almost child’s play for scammers and hackers to obtain your data and use it for their own ends and advantages.

It doesn’t have to be that way anymore, though, as countless ways exist to mitigate the risk of fraud. You may not be able to control every aspect of your business or personal life, but you can do all you can to stop fraud at its source. After all, prevention is always better than cure.

Monitor All of Your Data

Previously we may have only monitored transactional data for any potentially fraudulent practices, but fraud is a flexible and ever-changing beast. In 2022, fraud can be the uploading of sensitive data to social media, saving it to a smartphone, or emailing company information to a third party. The right monitoring technology, like Xelix, can ensure all data leaving your company is doing so securely should it ever need to do so.

Hire the right people

Education on fraud within your company is crucial in mitigating risk. Knowing that you have a team that knows the procedures puts you firmly on the right path. If you have a team that you can trust with sensitive information, then you’re already putting up a huge barrier to potential fraudsters. Vet any new employees thoroughly via references – they could well save you in the long run.

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Set Up a Whistleblower Hotline

This way, you know any wrongdoing will be handled as soon as it is possible to do so. Employees should feel encouraged to report wrongdoing rather than frightened to do so. Naturally, this process goes hand in hand with hiring the right people. File this alongside one of those things you hope will never need to be used, but you’ll be thankful should the worst happen.

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Always Be Assessing Risk

Risk assessments are integral in fraud mitigation, and with sensitive data, it’s hugely important to ensure that every aspect of your business processing regularly undergoes a risk assessment. Again, having the right kind of team is a huge part of this process in that you can feel confident you have the right people to ensure that the risk of fraud is minimized.

Manage Workflow

Workflow is a lot more difficult to manage in light of the recent remote working revolution. Email is more heavily relied upon for authorization than it used to be. With this in mind, you and your employees have to be on the ball when it comes to sensitive data sent this way, as hackers may see this new working setup as an opportunity.

Jess Shaver
Jess Shaver
Online Entrepreneur. Successfully running and operating multiple eCommerce ventures, in between writing about it all.

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