Owning a microbusiness may mean that it is your first time ever running a business by yourself, which usually means that you are juggling several things at once. This could be from the actual making of the product or service you sell, down to the marketing, customer service, financial aspects and even inventory.
Alongside all of this, you need to have fraud at the forefront of your mind. In 2025 alone, theft from fraud that microbusinesses have dealt with has escalated and become more vigorous than ever. A key one to look out for in cheque fraud. Despite the prominence of digital payments these days, cheques are still used in financial processes within a business.
But checking Fraud is just the tip of the iceberg.
The Real Picture of The Fraud Landscape
Fraud against small businesses has surged by 70% since 2020. And this is not a typo. A weak point within small businesses is that they do not have the right security systems set up and tend to have fewer than 10 employees.
Most likely it is due to a lack of education in this field and lack of preventative systems in place. It may come from a loan you are looking to secure for your small business, and it may be a scam. Which is why it’s not just about money, it’s about trust and this goes further than your own security. Customers also need to have this trust in you to keep their financial details safe.
The Rise of AI-Powered Scams
Here is where the digital age makes fraud an even trickier issue than before. Fraudsters are now using generative AI to create hyper realistic phishing emails, fake invoices, and even deepfake videos. These aren’t your average “Nigerian prince” scams. They’re sophisticated, targeted, and often indistinguishable from the real thing.
Veriff’s 2025 Fraud Industry Pulse Survey found that 72% of businesses reported a year-over-year increase in Fraud, with fintech and e-commerce being hit the hardest. But even traditional brick-and-mortar microbusinesses aren’t safe. If you’ve got an email address, a bank account, or a website, you’re a potential target.
And here’s the kicker: AI is being used on both sides. While fraudsters use it to scale their attacks, businesses are racing to adopt AI-powered fraud detection tools. But for microbusinesses, the cost of these tools can be prohibitive.
Check Fraud: The Old School Scam That Still Lingers
You would think that paper checks would be an obsolete payment system by now, however 63% of organizations have experienced attempted or actual check fraud in 2024. And we are seeing that a whopping 91% still use checks regularly.
Why? They leave a paper trail. And for many small businesses, they’re easier to manage than digital alternatives.
But that familiarity is exactly what makes them dangerous.
Criminals steal checks from mailboxes, alter the payee or amount, and cash them at different banks. Some even use high-tech printers to create counterfeit checks that look eerily real. And once the money’s gone? Good luck getting it back.
That’s why using secure checks, with features like holograms, color-shifting ink, and Positive Pay verification, isn’t just smart. It’s essential.
First-Party Fraud: When the Threat Comes from Within
Not all Fraud comes from shadowy hackers in faraway countries. Sometimes, it comes from your own customers—or even employees.
First-party Fraud is on the rise, especially in the lending space. This happens when someone intentionally misrepresents their financial situation to get a loan or line of credit they never intend to repay. And it’s not always easy to spot.
According to DataVisor’s 2025 Fraud & AML Executive Report, this type of Fraud is exploding because traditional identity-based defenses just aren’t cutting it anymore. Fraudsters are using synthetic identities, blends of real and fake information, to slip through the cracks.
For microbusinesses offering credit or payment plans, this can be a silent killer. You think you’re helping a customer. Instead, you’re handing over goods or services you’ll never be paid for.
What Can Microbusinesses Do?
Let’s be real: you probably don’t have a full-time fraud prevention team. But that doesn’t mean you’re helpless. Here are a few practical steps you can take:
Use secure checks or switch to digital payments with built-in fraud protection.
Set up Positive Pay with your bank. It’s a simple service that flags suspicious checks before they clear.
Educate your team. Make sure everyone knows how to spot phishing emails, fake invoices, and suspicious behavior.
Monitor your accounts daily. The faster you catch Fraud, the better your chances of stopping it.
Vet your vendors and lenders. If something feels off, it probably is.
And most importantly, don’t ignore the warning signs. If a deal seems too good to be true, or if a customer is pushing you to rush a transaction, take a step back. Trust your gut.
The Bottom Line
Fraud isn’t just a big business problem anymore. It’s a microbusiness crisis. Meanwhile, the threats are becoming more complex in 2025, as they become more digitized and personalized.
However, you can nullify all threats with strong awareness. It is your first point of defense. If you stay informed, use secure checks, and maintain caution, you can play a more decisive role in protecting your business. Eventually, experts say that your business is more than numbers. It defines your future. Hence, you have a responsibility to protect it by all means.
