Fraud is an increasing challenge for small business owners. One type of fraud occurs when a new customer or client signs up for your online service, and then later turns out not to be who they said they were. This type of fraud costs small businesses every year.
As business transactions have moved online, we are now finding that FinTech tools can introduce increased liability for small business owners. In the Texas Venture Forum, we’ll hold a panel on this topic and hear from one small business owner who was hit with fraud.
In this panel, we’ll propose an identity management solution: the Data Co-op. What if a small business owner could verify a potential customer or client by asking another business in the community? The members of the Co-op will have the ability to propose potential client/customer names to the Co-op network to verify if any other business is currently working with that person. If so, then the likelihood that person is who they say they are is high. If no one is working with that person, then additional due diligence can be done before taking that person on as a client/customer.
The panel “How to Mitigate Fraud for Small Businesses” will be held at 2pm.