In cities across the U.S., small and medium-sized businesses play vital roles in their local economies, generating employment opportunities and revenue for the community. Credit unions recognize this and as a result, are focused on attracting and serving more commercial and business members.
However, these members face distinct challenges when it comes to payments fraud. The Association of Certified Fraud Examiners reveals that small to medium-sized businesses lose a median of $200,000 or an estimated five percent of their annual revenues to fraud each year. To make it worse, these fraudulent transactions can easily go undisputed due to regulations that require businesses to report fraudulent activity within two days, compared to the 60 days allotted to consumers, meaning it is unlikely the business owner will recover the stolen funds.
To help business members protect their hard-earned money from online banking and check fraud, credit unions must offer the right treasury management tools and educate members on trending tactics used by fraudsters. Doing so will empower members with greater control and visibility over the funds in their account.