In Canada, the growing threat of fraud has affected half of the nation’s small businesses in the past year, according to new data released by the Canadian Federation of Independent Business (CFIB) in collaboration with Interac Corp. This troubling trend has resulted in significant financial and emotional strains, with affected businesses suffering an average loss of $7,800.
Many small farms, sell their products and services online or at farmgate, and we know many small farmers have also fallen victim to fraud, so we thought we would share this information.
Fraudulent activities, ranging from email phishing and text scams to deceptive phone calls, have become increasingly sophisticated, making it challenging for agri-businesses to maintain security.
Particularly susceptible are those in sectors like agri-tourism, farmgate, and online retail where fraudulent payments and chargebacks are most prevalent. These scams not only cause direct financial losses but also lead to lost time, decreased staff morale, and a significant emotional toll on business owners.
In response, 90% of business owners express concern that advancements in artificial intelligence (AI) will only further complicate the detection of fraud, making it more difficult to protect their operations.
In light of these challenges, businesses are ramping up their defenses through enhanced verification processes like multi-factor authentication and greater investments in cybersecurity.
Governmental support plays a crucial role as well. Recommendations for increased support include enhancing the Code of Conduct for the Payment Card Industry to support fair and transparent transactions, boosting cyber policing, and providing financial assistance for IT security improvements.
As fraud continues to evolve, staying informed and prepared is vital. Business owners are encouraged to seek guidance from resources like CFIB’s Business Advisors or visit websites like Interac.ca for best practices on protecting their operations.
With October marking Cybersecurity Awareness Month, the focus on proactive fraud prevention is more crucial than ever.