Every small business that accepts card payments has to comply with the Payment Card Industry Data Security Standard (PCI DSS). This set of rules ensures your systems meet the minimum required technical safeguards for handling cardholder data. Great.

But here’s the reality: Most successful fraud attempts today—especially those targeting small businesses—exploit human error and operational gaps, not firewall deficiencies.

At Beacon Payments, we believe the strongest defense is a culture of security awareness. Here are five simple, practical tips that go beyond the checklist to help your team prevent both internal and external payment fraud.

1. Implement Dual Approvals for All Off-Cycle Payments

Most internal fraud happens when one employee has complete control over a payment process from start to finish. This is especially true for Accounts Payable (AP) fraud, such as fraudulent vendor invoicing (EFT fraud).

• The Tip: Mandate that two different people must authorize any payment that falls outside of your routine, automated process. This includes:
  • Any large or unusual supplier payment.
  • Changing a supplier's bank details.
  • Processing an unusually large refund or void.
• The Check: One person approves the invoice and creates the payment record; a second person (e.g., the owner or manager) logs in to the bank/payment portal to verify the details and execute the transfer. This segregation of duties is your simplest check-and-balance system.

2. Treat Suspicious Transactions as a Team Game

While your processor handles the heavy lifting of automated fraud screening, your staff are the last and best line of defense, particularly in a retail or service setting.

• The Tip: Train your team to spot red flags in card-present (CP) transactions and empower them to pause or decline suspicious sales.
  • In-Person Red Flags: A customer rushing the transaction, hiding the card, or refusing to dip the chip (claiming it doesn't work). A damaged or suspiciously worn card. Multiple purchases of high-resale items (e.g., gift cards, expensive electronics).
  • The Policy: Establish a clear policy (e.g., "If a transaction is over $500 and the chip fails, politely ask for photo ID or call a manager over"). Encourage staff to always use the EMV chip or tap-to-pay to shift fraud liability away from your business.

3. Embrace Multi-Factor Authentication (MFA) on Everything

Passwords are the weakest link in your security chain. A sophisticated fraudster doesn't need to hack your firewall; they just need to guess or steal an employee's password.

• The Tip: Enable Multi-Factor Authentication (MFA) on every single platform that touches sensitive business data, payments, or finances.
  • The Non-Negotiables: Your bank portal, your payment processor dashboard, your accounting software (Xero, QuickBooks), and, critically, all company email accounts.
• The Reason: MFA (often using an authenticator app or a text message code) can prevent up to 80% of data breaches stemming from weak or stolen credentials. It makes your login useless to a hacker without physical access to the employee's phone.

4. Be Sceptical of Any "Urgent" Electronic Fund Transfer (EFT)

Phishing and business email compromise (BEC) scams are the primary drivers of EFT fraud. Criminals trick employees into sending money to a fraudulent bank account by posing as a vendor, a CEO, or even an IT provider.

• The Tip: Adopt a strict "Verify, Don't Trust" rule for any request involving a change in payment details or a rush transfer.
  • The Warning Signs: Urgent requests, sudden changes in tone from a known contact, or slight misspellings in an email address or domain name (e.g., @https://www.google.com/search?q=beconpayments.com).
• The Protocol: If you receive an email asking you to wire money or change a supplier's bank account details, call the sender using a phone number you already have on file (not the number listed in the suspicious email) to verbally confirm the request. This simple call prevents almost all EFT/BEC fraud.

5. Monitor and Define Your "Normal" Transaction Profile

Fraudsters often test stolen cards or exploit stolen credentials with small, unusual transactions before hitting you with a massive order. By monitoring, you spot the pattern before the major loss occurs.

• The Tip: Regularly review your payment processor dashboard for transaction anomalies that are outside your business's "normal."
  • Look For: Multiple failed transactions followed by a successful one using the same card/user, an unusually high AOV (Average Order Value), multiple different cards used from the same IP address, or a high volume of purchases that all request expedited shipping.
• The Action: Set up automated alerts through your payment gateway for transactions that exceed your typical size or velocity. If an order looks suspicious, verify the phone number, or use your payment processor's Address Verification Service (AVS) data to confirm the billing address matches the card on file.

Protecting your small business from payment fraud is a continuous effort, not a one-time setup. By integrating these practical, team-based security habits into your daily routine, you build a robust defense that is often more effective than the most complex software alone.

Ready to enhance your fraud protection tools? Contact Beacon Payments today to review your current payment system's built-in security features and explore advanced risk-management services.