# How to ensure your new business doesn’t become a victim of Covid-related fraud Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2020-10-15 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Protect Your New Business: Key IT Security Tips for Start-ups Meta Description: Learn from Francesca Dowling, Head of Compliance at Amaiz, on how to safeguard your business from rising cases of fraud during the pandemic. Get essential IT URL: https://financedigest.com/how-to-ensure-your-new-business-doesnt-become-a-victim-of-covid-related-fraudhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/untitled-design-2020-10-15t113802-1736838803223-compressed.jpg) _By **Francesca Dowling,** Head of Compliance at [Amaiz](http://www.amaiz.co.uk) (the business app)_ In the movies, a disaster always seems to cause chaos on the streets. The standard direction to the ‘background actors’ is clearly to run screaming in panic in different directions. Of course, we’ve all recently learned that, apart from the odd fight over loo rolls, the chaos the pandemic has caused is less visible than that. We’ve accepted intrusion into our lives by the state, we’ve changed where we work, and we’ve isolated ourselves from each other. This creates the perfect conditions for fraud and there has consequently been a massive [spike in the number of cases](https://www.financedigest.com/telecom-italia-tops-europes-stoxx-600-amid-spiking-covid-19-cases.html "Telecom Italia tops Europe’s STOXX 600 amid spiking COVID-19 cases"). Fraudsters are feeding on the disruption. How do you [protect yourself and your new business](https://www.financedigest.com/the-best-ways-to-protect-your-business-from-cyber-threats-in-2021.html "The best ways to protect your business from cyber threats in 2021")?  I’ve made it my life’s work to prevent fraud. Below are just some of the key issues you should be thinking about as you start up, to ensure you’re not a victim. Unless you’re a specialist, employ an IT support company to ensure that you don’t make any basic errors in your IT [security set](https://www.financedigest.com/u-s-russian-officials-set-for-security-talks-on-january-10-u-s-official.html "U.S., Russian officials set for security talks on January 10 – U.S. official") up. Some of the key points: - Two-step authentication is now standard. It is far too easy for fraudsters to [access your systems](https://www.financedigest.com/telehealth-monitoring-to-rule-the-the-transseptal-access-systems-market.html "Telehealth monitoring to rule the The Transseptal Access Systems Market") without it. It is also worth considering biometrics (fingerprint, eye scanner), depending on your level of risk. - Instal anti-virus software, some is better than others. Will your employees be using their own devices?  If so, make sure that they have the same security installed as the rest of your IT. - A good IT system will [force regular changes](https://www.financedigest.com/apple-forced-to-change-charger-in-europe-as-eu-approves-overhaul.html "Apple forced to change charger in Europe as EU approves overhaul") to passwords so that you’re not reliant on employees complying. - Who has access to the passwords for your website and [social media](https://www.financedigest.com/yoono-discuss-the-importance-of-social-media-checks.html "Yoono discuss The Importance of Social Media Checks")? Too many companies [lose control](https://www.financedigest.com/back-to-basics-for-cost-control-as-the-usual-levers-lose-value.html "Back to basics for cost control as the usual levers lose value") over both within weeks of starting up. Keep a record and change the passwords (and access in the case of social media) [every time](https://www.financedigest.com/how-to-nail-your-banking-audition-every-time.html "How to nail your banking audition every time") someone leaves. If not, you could be held to ransom by a disgruntled ex-employee/ [supplier or someone could commit fraud](https://www.financedigest.com/why-your-business-is-vulnerable-to-supplier-fraud.html "Why Your Business is Vulnerable to Supplier Fraud") by posing as you. It is [well worth getting an independent specialist company](https://www.financedigest.com/computerized-physician-order-entry-cpoe-systems-market-to-generate-profitable-avenues-for-existing-companies-as-well-as-new-players.html "Computerized Physician Order Entry (CPOE) Systems Market to Generate Profitable Avenues for Existing Companies as Well as New Players") to audit your IT security. Unlike your IT support team, they’re incentivised to find [problems and solve](https://www.financedigest.com/solve-a-problem-you-know-and-live.html "Solve a Problem You Know and Live") them before they cause a breach. While [working from home](https://www.financedigest.com/working-from-home-heres-how-you-can-save-money-on-your-auto-insurance.html "Working From Home? Here’s How You Can Save Money on Your Auto Insurance"), security standards can slip. Make sure all employees are briefed on the basics and check that their [working environment](https://www.financedigest.com/the-benefits-of-creating-a-great-working-environment.html "The Benefits of Creating a Great Working Environment") is secure. Are they working in a shared house where someone else, they barely know, could access their computer?  Do they work in coffee shops?  Is that something you’re comfortable with or could it lead to customer, or other sensitive data, being compromised? ![Francesca Dowling](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/francesca-dowling-amaiz-450x450-1736838802954-compressed.jpg) Francesca Dowling As a start-up it may seem like the ‘done’ thing to work in public places, but they really are best avoided. Fraudsters love public Wi-Fi. It takes them minutes to set up a convincing [account and all they have to do is sit there and wait for people to log on to what appears to be the official](https://www.financedigest.com/twitter-to-introduce-official-label-for-some-verified-accounts.html "Twitter to introduce ‘Official’ label for some verified accounts") Wi-Fi. Or, to their amusement, be asked for the Wi-Fi details by other customers. They then have access to the computer and all the passwords stored there. How do you intend communicating with your team, suppliers and customers? It is very easy to hide behind our computers at the moment, and not to speak to each other at all.  However, the phone can be a great way of [avoiding two of the most common scams](https://www.financedigest.com/how-to-avoid-online-dating-scams.html "How To Avoid Online Dating Scams?"). The first is the ‘employee’ who urgently needs you to transfer their expenses to their bank account, and helpfully [gives you their bank](https://www.financedigest.com/russian-central-bank-gives-legal-entities-green-light-to-trade-foreign-shares.html "Russian central bank gives legal entities green light to trade foreign shares") details to ‘make it easier for you’. The text may be written in their usual style and even come from their [phone number](https://www.financedigest.com/your-phone-number-on-google-search-giant-now-takes-removal-demands.html "Your phone number on Google? Search giant now takes removal demands").  If anyone requests money from you like this, phone them and check it is them. The [second is the e-mail from the supplier advising you that they’ve changed their bank](https://www.financedigest.com/bank-of-england-set-for-second-hefty-rate-rise-in-a-row.html "Bank of England set for second hefty rate rise in a row") details. Again, the e-mail can come from their usual address and include their standard signature.  If anyone gives you new bank details, always phone to check before you make the change. Fraudsters will also phone you. Typically, they pretend to be an [official body](https://www.financedigest.com/global-crypto-regulation-body-likely-in-next-year-top-official-says.html "Global crypto regulation body likely in next year, top official says") to get your personal details or to demand immediate payment of tax. They can be very aggressive and even threaten you with prison if you don’t pay there and then. With all calls, unless you recognise someone’s voice, treat it as a cold call. Tell them you’ll phone them back. Then find the official number (the one on the bill or on the website) and call that and check. The fraudster will stay on the phone, to pretend to answer the call, so use a different phone if you can. There are numerous other scams and new ones almost every day, so do follow specialist social media for updates and alert colleagues when you hear of new ones. Once you know what to look out for it is easier to avoid. The above are the tricks of the career fraudsters. However, suppliers and [customers can commit fraud](https://www.financedigest.com/fraud-protection-why-customer-onboarding-requires-digital-identity-processing.html "Fraud Protection: Why Customer Onboarding Requires Digital Identity Processing") against you too.  Suppliers may double invoice in the hope you won’t notice, and customers may fail to pay, pretending it is some fault on your side. It is therefore [worth researching](https://www.financedigest.com/industrial-hearables-market-worth-us-991-5-mn-by-2026-comprehensive-research-report-by-fmi.html "Industrial Hearables Market worth US$ 991.5 Mn by 2026- Comprehensive Research Report by FMI") the people you intend to work with to find out what their reputation is. Google will help but don’t just check the [directors and the company name](https://www.financedigest.com/hybrid-theory-promotes-ines-martins-to-global-head-of-product-names-sean-badlishah-managing-director-of-apac-region.html "HYBRID THEORY PROMOTES INÊS MARTINS TO GLOBAL HEAD OF PRODUCT; NAMES SEAN BADLISHAH MANAGING DIRECTOR OF APAC REGION."), also check their phone number (often used through different iterations of the same company) to see how legitimate they are. Do a credit check, do they pay on time or do they have CCJs (County Court Judgements) which are only obtained when a [company has failed to pay their debts](https://www.financedigest.com/understanding-company-debt-finance.html "Understanding company debt finance"), even after a court has ordered them to?  Whether a potential customer or a supplier, that tells you that you can’t trust them. Look at their social media, read what they [say on their accounts](https://www.financedigest.com/midlands-accountants-say-its-never-too-early-to-get-financial-protection.html "MIDLANDS ACCOUNTANTS SAY IT’S NEVER TOO EARLY TO GET FINANCIAL PROTECTION") and then at their reviews.  Ignore the glowing five-star reviews, they may be friends and family, or even bought. The critical reviews, and how they [respond to that criticism](https://www.financedigest.com/pm-rishi-sunak-sets-out-priorities-for-britain-responds-to-critics.html "PM Rishi Sunak sets out priorities for Britain, responds to critics"), will tell you far more about the company and its attitude to its customers.  We all get that one customer that you can’t reason with, so you should expect some issues, but look at the pattern of their responses. However careful you are it is very easy to get caught by fraudsters. If you are, don’t be embarrassed, [alert the bank](https://www.financedigest.com/finance-brokers-bank-on-red-flag-alert-to-help-beat-fraud.html "FINANCE BROKERS BANK ON RED FLAG ALERT TO HELP BEAT FRAUD") and police immediately. [Timely notification can lessen the impact and increases the chances of the criminals getting caught](https://www.financedigest.com/its-time-the-legal-industry-caught-up.html "It’s time the legal industry caught up").  Too often people blame themselves for their stupidity, but the authorities know how convincing fraudsters can be. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---