Small businesses are largely susceptible to scams. Last year, the national campaign Take Five to Stop Fraud reported that 80% of small and mid-size enterprises (SMEs) received unsolicited texts or email requests, while 64% received unsolicited phone calls asking for personal information and funds. With how frequently businesses are targeted for fraud, your customers can be highly susceptible, too.
If you believe your databases or business information can be exploited in any way, your customers are vulnerable to scams. As such, it’s crucial to adopt security measures that protect them from being contacted or having their data stolen for fraudulent purposes. Here are some ways you can do this.
Provide advisories
Scammers often pose as other people to extract crucial information from their targets. Within 2023, there has already been a phone fraud scheme that uses the same number to contact businesses and individuals. Scammers ask for sensitive information like bank account numbers or social security information by pretending to be connected to your business. Over the years, similar methods have been carried out via email, text, or social media. Since small businesses can be less formal than large businesses, it may be easier for customers to believe a scammer who claims to be you. As such, you should ensure that all your contact information is easily accessible to customers. Post information about the services or inquiries you may contact them about and what information scammers often look for that you would never seek. Advise them that if someone contacts them claiming to be a representative of your business but deviates from these standards, it is likely to be a scam.
Handle your customers’ data responsibly
Even big businesses with advanced data security measures are susceptible to data breaches, so it’s essential to be extra . Since you’ll be holding sensitive customer data, you must adhere to data protection policies such as the Data Protection Act. Failure to do so can result in hefty fines, as seen in the Clearview AI case in 2022. The company breached the UK’s Data Protection Act by collecting data for identification and behaviour tracking to be offered as a commercial service to businesses, resulting in a fine of £7.5 million. Compliance with these policies involves collecting only necessary data and informing customers explicitly about how it will be used. You must ensure appropriate security to prevent unlawful or unauthorised access, and delete data once they have served their purpose. Customers also have the right to have their data erased or object to how it is being used, so any requests must be entertained.
Choose reliable payment methods
When conducting transactions, your customers’ bank details are vulnerable to hackers and thieves, so choosing a reliable payment solution that complies with security standards is vital. Today, modern mobile card machines make small businesses safer by ensuring Payment Card Industry Data Security Standard (PCI-DSS) compliance. These regulations provide guidelines on how organisations processing transactions from the biggest card networks can responsibly handle cardholder information. Compliant data card readers avoid data breaches and fraud since PCI-DSS requirements are constantly updated with more novel threats. Older systems that fail to adjust to these updates can be put at risk. For instance, British Airways and Ticketmaster UK suffered breaches in 2018 after modified scripts on their payment systems left them vulnerable to hacking. Today, PCI-DSS-compliant mobile card machines process contactless payments, so you can ensure that you cover all your bases regarding the security of digital payments.
Adopt robust cybersecurity measures
Small businesses can be an easy target for hacking, putting your customers’ data at risk. As such, you should adopt robust cybersecurity measures for your website, e-commerce platforms, business software, and other databases. This includes cyber essentials like setting up firewalls, installing antivirus software, backing data up, updating software, and enabling two-factor authentication for work account log-ins. In addition, you can raise your cybersecurity level to meet the Information Assurance for Small and Medium Enterprises (IASME) Governance Standard. Qualifying for IASME means adopting a more rigorous approach to cybersecurity. The committee provides a standard for effective risk assessment and management, staff training, incident response, and business continuity that can heighten protection for your company.
Your brand’s reputation relies on how well you serve your customers. As a small business, adopting these measures heightens your customers’ safety from scams and solidifies their trust in you.