It’s International Fraud Awareness Week until November 19th – a perfect time to highlight the importance of fintech development to the fight against fraud for businesses everywhere. The Canadian Federation of Independent Businesses estimates the average cost to a small business victimized by fraud in the past 12 months at $6,200 – in addition to an average of $2,900 spent on fraud protection per year, and the negative impact of fraud on morale, productivity and customer confidence.
More and more small businesses take advantage of digital payments systems to process their transactions every single day. How can they be sure that their money is handled securely when operating outside the traditional banking and payment processing systems?
Due to the sensitive nature of the business we do every day, fintech firms are often highlighted as one of the industries in which anti-money-laundering (AML) and information privacy regulations must be upheld to very strict standards. This factor alone ensures that the vast majority of fintechs are committed to keeping an up-to-date set of standards and practices against fraud.
Many fintech firms are devoting their work specifically to using big data, machine learning and predictive models to squeeze the chance of fraudulent transactions as low as possible – a boon for small businesses that often run on tight margins where every dollar counts, and who are increasingly moving to e-commerce models where fraud exposure is greater than average. By sorting through massive lists of transactions intelligently, fintechs can create models that identify and flag any patterns of fraud activity.
Don’t let fraud take a bite out of your small business. You can visit the Canadian Anti-Fraud Centre website to learn more about fraud prevention for businesses. In the meantime, whether you’re looking for an e-commerce platform, a funding solution, or any other type of financial service provider, look for key certifications like Digicert SSL, and accreditations from recognized bodies such as local and regional Better Business Bureaus.