Small Business Fraud Prevention: 10 Simple Tips for Owners
Article • Last Updated: September 14th, 2026 • Amber MaloneSmall business fraud prevention doesn't take expensive software, a few simple habits will get you the foundational protection. These 10 practical checks help you stop vendor, invoice, and employee fraud before one convincing email or honest mistake costs you thousands.
I recently met and networked with KC Ernst, a fraud and rick leader with Pipl. I thought our conversation around fraud was so enlightening I asked him to share tips for our clients and readers around the topic of fraud. Here is a summary of what he shared. If you’re a small business owner, you’ll want to read this and follow his suggestions and tips. We see fraud first hand happening through emails, credit card charges and now with QuickBooks.
Fraud-Prevention Tips for Small Business Owners
1.Always verify changes to payment information.
If a vendor or employee changes banking information, call them using a phone number you already have, not the number in the email.
2. Never let urgency override your process.
“I need this paid immediately” is a common fraud tactic. Slow down and verify.
3. Require two people for larger or unusual payments.
One person prepares the payment; another reviews and approves it.
4. Use multifactor authentication (MFA).
Turn it on for banking, email, QuickBooks, payroll, and other important accounts.
5. Limit employee access.
Give employees access only to the systems and information they actually need.
6. Watch for changes in normal behavior.
A familiar vendor suddenly changing banks or an employee requesting an unusual payment deserves a second look.
7. Verify people not just information.
Birthdays, addresses, phone numbers, and other personal information can often be found or stolen. Don’t rely on them alone for verification.
8. Make it okay for employees to question a request.
Employees should feel comfortable verifying unusual requests even when they appear to come from the owner.
9. Review who has access regularly.
Remove old users and update permissions when employees or responsibilities change.
10. Test your fraud controls once a year.
Ask your team: “If someone wanted to steal money from our business, where would our biggest weakness be?” Then fix those gaps.
The big takeaway: You don’t need complicated fraud systems. Build simple checks so that one convincing email, phone call, or employee mistake can’t result in a major financial loss.