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Protecting your business from fraud

Most fraud against small businesses relies on a rushed payment or a missing check. Simple habits stop most of it.

Small businesses are attractive targets for fraudsters because they often have fewer checks than large firms and one person handling the money. The good news is that most fraud relies on a rushed payment or a missing check, and simple habits stop most of it.

The frauds to watch for

  • Invoice redirection. An email that appears to come from a real supplier says their bank details have changed. The next payment goes to the fraudster.
  • Boss impersonation. A message or call that seems to come from the owner or a director asks a member of staff to make an urgent, confidential payment. AI tools can now copy a familiar voice convincingly.
  • Fake invoices and directories. Bills for listings, adverts or services you never ordered, sent in the hope that someone pays without checking.
  • Phishing. Emails or texts that look like they come from your bank, a delivery firm or HMRC, asking you to log in or pay.
  • Inside fraud. False expenses, payments to made-up suppliers or stock that goes missing.

Simple checks that work

  1. Confirm any change of bank details by phone, using a number you already hold, never one given in the email asking for the change.
  2. Split the money jobs. Where possible, the person who sets up a payment should not be the person who approves it.
  3. Slow down urgent requests. Pressure and secrecy are the fraudster’s tools. Make it normal for staff to check any unusual payment request, even one that seems to come from you.
  4. Check bank statements every week, and match payments to real invoices.
  5. Turn on two-step login for email, banking and accounting software, so a stolen password is not enough.
  6. Write it down. A one-page payments policy that everyone knows is easier to follow than good intentions.

If it happens

Call your bank immediately, as fast action gives the best chance of stopping or recovering a payment. Change passwords on any account that may be affected. Then report it: in England, Wales and Northern Ireland to Report Fraud at reportfraud.police.uk or on 0300 123 2040, and in Scotland to Police Scotland on 101. Keep emails, invoices and records of calls, as they will be needed.

This guide is general information, not professional advice. For decisions about tax, law or finance, speak to a qualified adviser.

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