Three Types of Business Fraud and How to Stay Protected

Running a business requires trust — trust in your employees, vendors and financial systems. Fraudsters, though, are constantly looking for ways to exploit that trust. From phishing emails to fake invoices, business fraud can strike organizations of any size and lead to serious financial loss. Understanding the most common types of fraud is the first step toward guarding against them.

1. Payment and Check Fraud

Fraudsters often attempt to alter, counterfeit or forge business checks, or reroute payments to illegitimate accounts. Paper checks remain one of the most common vehicles for business fraud, especially for businesses that send or receive many monthly payments.

How to help protect your business:

• Use secure check stock with fraud-prevention features such as watermarks and microprinting.
• Reconcile accounts frequently and monitor for unusual transactions.
• Adopt electronic payment methods or services like Positive Pay to verify checks before they clear.

2. Business Email Compromise (BEC)

BEC scams target businesses that regularly send wire transfers or payments. Criminals impersonate executives, vendors or trusted partners to convince employees to send money or share confidential information. These emails often appear legitimate and time-sensitive, making them easy to miss.

How to help protect your business:

• Always verify payment requests through a secondary channel such as a phone call or in-person confirmation.
• Train employees to spot red flags like urgent tone, slight email address variations or requests for secrecy.
• Implement multi-factor authentication and restrict who can authorize large transfers.

3. Vendor or Invoice Fraud

Fraudsters may impersonate legitimate vendors, submit fake invoices or change payment details on existing accounts. This form of deception can slip through busy accounting teams if processes for validation are weak or inconsistent.

How to help protect your business:

• Keep accurate records of vendor information and approved contacts.
• Verify any change in payment details directly with the vendor using a known contact method.
• Separate duties so the person authorizing payments is not the same one processing them.

Building a Culture of Vigilance

Technology helps, but your best defense is awareness. Encourage employees to question unusual requests and to report anything that seems suspicious. Regular fraud education and strong internal controls can drastically reduce your exposure.

We’re committed to helping businesses protect their finances. Speak with your relationship manager or visit AtlanticUnionBank.com/BizFraud to learn more about secure business banking tools and fraud protection services.