When financial frauds hit, even large companies suffer the impact with great difficulty. One cannot imagine the plight of small businesses. Hence fraud protection becomes more important for small businesses. Read on to know how technology can prevent fraud and save small business money:
Strong identity verification: Identity verification of customers poses a strong threat as there is wide scope for using stolen data. To identify such frauds the employees must be trained extensively which involves huge training cost. This will not be feasible for small business. Hence technology helps in entering into an agreement with associate partners who can do this KYC through video call business. Video verification is safer in checking the KYC norms. Thus, small business will be relieved of incurring huge verification and training costs. The AP takes care of the same through his employees who are specially trained for this purpose. For example, verification of hologram in Identity documents may not be possible for the small business. But when the verification process is routed through an AP, this can be done easily by them as they can afford the technology. Hence the small business will have access to high-value technology at a payment of nominal fee.
Fin-tech financial partnering: It is not possible for a small business to acquire all the latest financial techniques as the cost aspect is involved. Instead, they can smartly check whether their financial partners are technically advanced. For example, availing services of a banker who uses blockchain technology for online transactions.
Automated internal controls: Automating internal controls is a one-time investment. But it is a very effective way to protect frauds and keep track of processes. There are good tailor-made solutions offered by third-party vendors. Those can be easily installed and maintained. Most of them are user-friendly too.
Using the above 3 ways even a small business can effectively prevent frauds and save money.