While many go about achieving success through hard work and dedication, there are those that choose to cheat their way to the top, typically at the expense of someone else. Scams on a one-to-one level are troublesome, but they can put livelihoods at stake when businesses are targeted.
In New Zealand, a number of scams that hit the country's small businesses are centred on the digital space. In fact, cybersecurity specialists NetSafe reported that the average cost of such incidents is just over $10,000.
Overseeing the threats
While that figure may prove to be pocket change for a huge conglomerate, many small businesses just can't afford to lose that kind of capital. So, what's the best way to negate the threats that scammers pose?
Well, the simple answer is awareness. Having an understanding of the kind of threats that are out there, and being able to react accordingly is a must. For example, one scam aimed at the country's small businesses came to prominence in late June.
A letter was sent to a number of small entities claiming that they would be struck off the Companies Register if they didn't pay a sum of $1,411 to update their details. On closer inspection, it was discovered as a scam as the letter used a false logo for the New Zealand Companies Office, and had a return address located in Hamburg, Germany, as reported by stuff.co.nz.
The common issue
The most common scams that hit small businesses are typically centred on false invoices and requests for bank details. In the case of the former, it's important to ensure that your company follows best practices in efforts to avoid pitfalls.
For example, if you're using the invoice module alongside CashManager from Accomplish, make certain those who are taking orders and processing them know how to do so correctly, and are unlikely to make a mistake.
In doing this, not only will you be able to make sure that the business' finances are kept in order, but you may just avoid some of the most common scams that afflict small companies, too.