Running a small business means wearing a lot of hats. From serving customers and managing employees to keeping up with invoices and cash flow, there is always something that needs your attention. But amid the day-to-day responsibilities, protecting your business finances should remain a priority.

October is Cybersecurity Awareness Month, making it a great time to review your banking habits, strengthen your security practices, and make sure your business is taking steps to help prevent fraud.

The good news? You don’t need a dedicated IT department to make a difference. A few simple precautions can go a long way toward helping protect your business.

7 Ways to Help Protect Your Business From Banking Fraud

Use this checklist to review your current practices and identify opportunities to strengthen your business’s financial security.

1. Review Your Bank Account Activity Regularly

Make it a habit to review your business bank accounts and transactions. Look for unfamiliar charges, unexpected withdrawals, duplicate payments, or other activity that doesn’t look right.

The sooner you identify a suspicious transaction, the sooner you can contact your bank and take steps to address it. Consider setting aside time each week to review your accounts and reconcile transactions.

2. Strengthen Your Passwords and Login Security

Your online banking credentials are an important line of defense. Use strong, unique passwords for your business accounts, and avoid reusing passwords across multiple websites or applications.

Enable multifactor authentication whenever it is available. This adds another layer of security by requiring an additional form of verification when accessing an account.

Never share your banking credentials with employees or anyone who contacts you unexpectedly claiming to represent your bank.

3. Know Who Has Access to Your Business Accounts

As your business grows, you may need employees to help manage payments, payroll, or daily banking tasks. Take time to review who has access to your accounts and what they are authorized to do.

Give employees access only to the information and banking functions they need to perform their jobs. Remove access promptly when an employee leaves or changes responsibilities, and avoid sharing login credentials.

Establishing clear procedures for preparing and approving payments can also help reduce the risk of unauthorized transactions.

4. Watch Out for Suspicious Emails and Text Messages

Phishing scams often involve emails or text messages designed to look like they came from a trusted organization, vendor, or financial institution. These messages may ask you to click a link, provide sensitive information, or take immediate action to avoid a supposed problem.

Before clicking a link or responding, check the sender’s information and consider whether you were expecting the message. Be especially cautious of urgent requests involving your bank account, passwords, invoices, or payments.

Remember, scammers can make messages and caller ID information look legitimate. Taking a moment to verify a request can help protect your business.

5. Verify Vendor Payments Before Sending Money

Payment fraud can happen when a criminal impersonates a vendor, supplier, or business associate and requests a change to payment instructions. An email may look legitimate, but the bank account details could belong to a fraudster.

Before changing a vendor’s banking information or sending an unusual payment, verify the request using a trusted phone number you already have on file. Don’t rely solely on the contact information included in the unexpected message.

For larger payments, consider requiring a second person to review and approve the transaction. A simple verification process can help prevent costly mistakes.

6. Review Your Check and ACH Fraud Prevention Options

Checks and electronic payments are convenient ways to pay employees and vendors, but they can also create opportunities for fraud.

Ask your banker about available fraud prevention tools that may help protect your business accounts. Depending on your account and services, options may include:

• Check Positive Pay: Helps identify potentially fraudulent, altered, or counterfeit checks so you can review questionable transactions.
• ACH Positive Pay: Helps you monitor ACH activity and review transactions that fall outside your authorized parameters.
• ACH Block: Can help prevent unauthorized ACH transactions from posting to an account, depending on how the service is configured.

These tools can add another layer of protection to your payment processes. Learn more about Midwest Heritage’s treasury management and fraud mitigation services.

7. Make a Plan for Suspected Fraud

Even with precautions in place, it’s important to know what to do if something goes wrong.

Make sure you and your employees know how to report suspicious activity and who to contact if banking information may have been compromised.

If you notice an unfamiliar transaction or believe you’ve shared sensitive information with a scammer, contact your bank immediately. Don’t wait to see whether another suspicious transaction appears.

You can reach Midwest Heritage at 800-782-0521 or contact your local banking team for assistance.

Make Cybersecurity Part of Your Business Routine

Cybersecurity Awareness Month is a helpful reminder to review these habits, but protecting your business is a year-round effort. As your business grows and your financial needs change, it’s also worth revisiting your banking services and fraud prevention tools to make sure they continue to fit your needs.

At Midwest Heritage, we’re here to help you manage your business finances with confidence. From everyday business banking to treasury management solutions, our team can help you explore options for managing payments, monitoring account activity, and strengthening your financial safeguards.

Have questions about protecting your business accounts? Visit our Business Banking page or call 800-782-0521 to connect with our team.