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Protecting your motor trade business from fraud

Friday, 26 January 2018 GMT
Author: Staveley Head

Did you know that fraud affects 1 in 4 small businesses every year? Your motor trade business is your livelihood. So, it’s important to increase awareness of the many scams that could seek to make a financial gain at your expense.

As specialist motor trade insurance providers, we’ve put together this handy guide to help you protect your business from fraud. 

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Online hackers

A computer hacker is someone who seeks to gain unauthorised access to personal and sensitive information by modifying or altering computer software. The consequences of this happening to a motor trade business can be devastating. The hacker could look to use sensitive information to take money from bank accounts and/or take out credit in another person’s name leading to identity theft. This could cause harm to your employees, customers and even the reputation of your business. To combat this threat, it’s good practice to make sure all your computers have the minimum-security software. This includes antivirus, antispam and antiphishing software. Check out the below short video on hacking and malicious software including details of who you can contact if your business experiences suspect online activity.

Educating your employees

Whether you have staff that work in accounts, client-handlers or those that deal with your suppliers, by making fraud a concern for all staff members, this can help to reduce the potential for this to occur.

Here are some ways in which you can help safeguard your business from fraud:

  • Being vigilant by training staff on how to spot and potentially prevent fraudulent activity.
  • Introduce checks whereby a suspicious looking email is checked by another team member.
  • Be alert for client or supplier payment requests that are out of the norm.
  • Have any requests for the movement of money by email or telephone verified by a second contact.  

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Watch your business accounts

Make sure you watch your business accounts like a hawk. This one is simple to follow as with online banking you can check your business account 24/7. Take your time to check through your online statements to ensure that no payments are missing, make sure all receipts are clear and that there’s no unauthorised payments to unrecognised individuals or businesses. Let your accounting staff know that you’re reviewing the accounts on a regular basis. If the figures don’t add up, you could look to get a second opinion from an external qualified accountant.

Increased protection for your business

If an incident was to occur resulting in one of your customers suffering an injury whilst visiting your business premises, this could potentially cost you thousands in compensation if you don’t have liability insurance. This can be even more distressing if the claimant makes a false statement to try and gain more in compensation.

Would you like further information on fraud?

As fraudsters look for more sophisticated methods to profit at another person’s expense, it leaves motor traders needing to be on their guard. For further information about fraud in the motor trade, check out the following guide ‘Everything you need to know about rising motor trade insurance premiums and fraud’.

How do you protect your motor trade business from fraud? Let us know on our Facebook and Twitter pages. 

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