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15/03/2019
Industry research suggests that a significant number of businesses each year are victims of payment fraud, and that they’d suffered cash losses as a direct result. The Take Five To Stop Fraud website revealed that a quarter of UK businesses admit they've experienced payment fraud, yet a disturbing 49% think, despite this trend, that it won't happen to them.
As well as the monetary impact, they suffered other consequences such as lowered staff morale and had a negative influence on client relationships.
Payment fraud can be difficult to detect – most business owners want to assume payments for their goods or services are legitimate. Because there are a number of ways to commit payment fraud, it’s vital that business owners are aware of them. This important not only for how you receive payments, but also for how you’re paying your creditors.
The upshot is that you should be concerned about payment fraud.
Although payment fraud tends to happen most commonly in retail businesses, they’re not the only ones vulnerable by any means, especially when it comes to online shopping.
If you're in a bricks-and-mortar retail store, be on guard for the following:
As in most cases, prevention’s always better than a cure. Chasing up people who’ve swindled you is time-consuming, stressful and not always successful. It’s far better to have measures in place to prevent payment fraud happening in the first place.
Offering debit or credit card options, taking payments electronically using mobile payment methods, and ensuring your store has a good surveillance system are all good ways to prevent fraud.
It is safer to not accept cheques as these provide an easier way for a fraudster to scam you. Your customers have a range of other options available to them, which is why you’ll go a long way these days to find a business that continues to accept cheques.
The best way to protect your business from payment fraud is by using the most up-to-date payment options available, and moving away from old systems. The better the technology, the better the security will be, and the harder fraudsters will find it to get around the systems.
Talk to us about the payment solutions we offer. We'll have something that’s perfect for your business and will actually enhance your relationship with your customers.
You can report fraud on our website. We also have a range of resources aimed at helping you keep your business safe from fraud.
There are some useful online portals aimed at helping UK businesses avoid fraud and scams. For example:
Talk to us about our business accounts, and how they can be set up to guard against fraud.
POSTED IN: Finance advice,Savings,Day to Day Banking
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You can find impartial information and guidance on money matters on the “MoneyHelper” website.
Clydesdale Bank is covered by the Financial Services Compensation Scheme (FSCS), Find out more.