Fraud and Security

Business Fraud Prevention: A Crucial Strategy for Your Company

June 11, 2024

Welcome to First Bank and Trust Company, your dedicated partner in fraud prevention for businesses. In today's digital landscape, every business owner needs to recognize the importance of fraud prevention. A comprehensive understanding of how to prevent fraud is key to protecting your company's assets and reputation. In this guide, we'll explore various strategies to implement effective fraud prevention measures, discover potential fraud vulnerabilities, maintain stringent internal controls, and ensure your business account security.


Why Fraud Prevention is Essential for Businesses

Running a successful business in the modern digital world demands a proactive approach towards fraud prevention and that requires familiarity with the pillars of fraud prevention. The pillars of fraud prevention include strong internal controls, advanced fraud detection systems, and workforce education on small business fraud prevention.

Fraud can manifest in several forms such as identity theft, payment fraud, card fraud, accounting fraud, and cyber fraud. By understanding the different types of fraud and their potential impact, you can take pre-emptive steps to prevent, detect, and respond effectively to fraud, including common threats like business check fraud.

Proactive Strategies for Business Fraud Prevention

Protecting your business's financial health and reputation involves implementing effective fraud prevention strategies. These strategies can drastically reduce the risk of becoming a victim of fraudulent activities. Key strategies include setting up strong internal controls, conducting regular audits, training your employees on small business fraud, investing in sophisticated fraud detection tools, securing your digital infrastructure, and regularly monitoring financial transactions. Promoting a culture of transparency and accountability to address employee fraud is also crucial.

Spotting Fraud Vulnerabilities in Businesses

Another key factor to effective fraud prevention lies in identifying and understanding common vulnerabilities that can lead to business check fraud or other forms of business fraud. Many businesses are vulnerable due to reliance on a single employee for financial tasks. This risk can be reduced by implementing internal controls such as requiring multiple approvals for financial transactions and frequent reviews of financial statements, or separating employee duties within your business so the person writing the checks is not also responsible for cashing checks and reconciling accounts.

Maintaining Strong Internal Controls for Business Account Security

Internal controls play a vital role in fraud prevention for businesses. These controls assist businesses in protecting their assets, preventing financial losses, and retaining stakeholder trust. To ensure effectiveness, businesses should clearly define their control objectives, identify potential risks, design control activities to address these risks and conduct regular process reviews to adapt to changes in their operations and external environment.

How to Secure Your Business Against Check Fraud and Other Threats

At First Bank and Trust Company, we recognize the importance of protecting your business from financial fraud. As fraud tactics become more sophisticated, staying informed and taking proactive measures is paramount. In this section, we'll share insights and tips to help secure your business and enhance your business account security.

Understanding common fraud tactics and implementing preventive measures can significantly reduce the risk of small business fraud.

Essential tips for protecting your business accounts include:

  • Verify by phone before sending funds when paying vendors via ACH. If your business pays vendors, business partners, and other parties through ACH, exercise extreme caution if your company receives an email requesting changes to the routing or account number – even if the email appears to be coming from your regular point of contact. The business sending a payment should call the vendor directly at the contact number on file to confirm the requested change before sending payment.
  • Monitor your accounts regularly. Business Online Banking allows you to view your transactions in real-time and set up automatic account alerts. You can also enroll in eStatements which allows you to look at your monthly account activity sooner than waiting to receive paper statements in the mail – which also poses a risk for fraud.
  • Monitor your accounts regularly. From making purchases to paying bills and vendors for your business, there are a few measures you can take to secure your methods of payment.

If you are making a payment or purchase online, ensure the website is secure by checking the URL. A secure website will include https rather than http. Click on the lock icon to verify that the website is trustworthy. 

Digital Payments – Adding your First Bank and Trust Visa Debit Card to your Apple or Google Play wallet ensures that your sensitive card information is protected when making card not present transactions online or contactless payments at checkout. Learn more about Digital Payments here.

Check and ACH Positive Pay – Whether you are writing checks or sending ACH payments to pay bills and vendors on behalf of your business, Check and ACH Positive Pay can help safeguard your business from attempted fraudulent payments. See how it works here.


  • Implement strong passwords and multi-factor authentication. Develop a passphrase, for example, “Summer is my favorite time of year,” and incorporate the phrase into your password. Using the first letter of each word in the sentence, your password would be 'Simftoy'. For additional complexity, you could add a date and special character to read, 'Simftoy2024$'.

Although you may create a stronger password using this method, it remains important to void using the same password for different accounts and to change your password frequently.

In addition to abiding by password best practices, it Is also important to enable multi-factor authentication. First Bank and Trust Company’s digital banking platform requires two-factor authentication, or 2FA, adding an additional layer of security to your account at login.


First Bank and Trust Company offers resources and services to help businesses mitigate fraud risks. Our team is ready to provide tailored guidance and support to meet your specific needs. Get in touch with us today.

Print & Download