Small Business Security Tips (Pt. 2 Why Verification and Password Security Matters)
Vendor fraud is one of the most common ways small businesses lose money—and it can happen faster than you think. Something as simple as paying an invoice with slightly altered bank details or skipping a verification call can open the door to fraudsters.
In this post, we’re focusing on three simple but powerful habits to help you avoid costly mistakes: securing your financial accounts, verifying vendor information, and requiring proper authorization before sending payments.
View the short video below for more information.
Start with Strong Passwords and 2FA
Protecting your financial accounts begins with controlling access. Weak or repeated passwords make it easy for cybercriminals to break in and wreak havoc.
Here’s how to strengthen your defenses:
Use unique, complex passwords for each financial account and software you use.
Turn on two-factor authentication (2FA) wherever possible—this adds an extra layer of protection by requiring a second form of verification (like a text code or authentication app) before anyone can log in.
Avoid password reuse—especially for any accounts connected to your bank, payroll, or bookkeeping tools.
Small steps like these significantly reduce the risk of unauthorized access.
Always Verify New Vendor Details
Fraud often occurs when payment information is changed—like switching bank accounts or contact information—and no one double-checks if the change is legitimate. Scammers will often pose as a trusted vendor, submitting fake invoices or updating payment instructions to route funds into their own accounts.
To avoid this:
Never rely solely on email. Call the vendor directly using a phone number you’ve used before or can verify independently.
Confirm any changes to payment details. Treat updates to banking or contact information as a red flag that requires verification.
Require Authorization Before Sending Payments
It’s essential to have checks and balances before money goes out the door. If only one person is in charge of processing payments, mistakes—or fraud—can go undetected.
To reduce risk:
Establish a review process. Make sure someone else looks at the invoice or verifies the details before payment is made.
Avoid rushed approvals. Fraud thrives when processes are skipped due to urgency or pressure.
A Few Minutes Can Save Thousands
The good news? These steps are quick. Taking five minutes to double-check a vendor’s banking info, requiring dual approval, or securing your accounts with 2FA can prevent thousands of dollars in losses. The habit of slowing down and reviewing before you pay is one of the easiest and most effective ways to protect your business.
Want to make sure you’re covering all the key areas? Enter your email below to download our free Small Business Security Checklist to help safeguard your finances.