Four Practical Ways to Prevent Fraud in Your Business

Small businesses with fewer than 100 employees lose an average of $141,000 to fraud, according to the Association of Certified Fraud Examiners. With the prospect of fraud wreaking havoc on small businesses, it’s important to devise a strategy for preventing and detecting fraudulent behaviour. If you ever find yourself dealing with the fallout of a scam or suspicious activity, speaking with a fraud lawyer can help you understand your options and protect your business.

Examine your bank statements

You could overlook transactions leaving your bank to an unidentified place if you don’t examine your bank records for abnormal activity on a frequent basis. Any unusual behaviour will be detected if you keep a close eye on your accounting entries. If you see any strange transactions, please notify your bank immediately.

Documents with Confidential Information

Keeping all of your business records locked up in a safe place is an important step you can take to minimise the chances of fraud. This includes financial records, credit card details, and federal tax ID numbers, or even client information. This is a huge problem, especially if you’re in the medical industry, because not only would you be responsible for potential fraud, but you’ll also have to prepare for any downfall you may need to fix. If a fraudster gets their hands on these documents, they could hijack your company’s identity and open new accounts in your name without your knowledge. They could also sell your information to other offenders. With this in mind, be cautious about how you dispose of sensitive business data, and destroy all correspondence and account information. When people search through your trash, it will be tough for them to identify your business details.

Transactions that are more secure

With around 79 percent of organisations reporting attempted or actual payment fraud, being diligent about the transaction methods you use could help you avoid becoming a victim of fraud. Some payment routes do not need the sharing of any bank information between the customer and the business. Positive pay (the mechanism used by banks) is also used by this company to avoid fraudulent activities. Using a secure, trusted payment method can help you avoid fraudulent transactions and limit access to your company account information, preventing identity theft.

Educate your employees on how to spot and report fraudulent activity

Staff training on suspicious activity that could be related to fraud, how to prevent fraud, and how to warn you of anything unusual will equip your team to alert you if they see or hear suspicious behaviour. For example, teaching employees to keep confidential information locked away, shred and dispose of sensitive papers properly, limit sharing company information with customers over the internet and phone, and ask customers for identification if they are making a larger-than-usual transaction could help prevent a fraudulent crime against your company.

 

The four measures listed above are just a few of the ways you could help to reduce the risk of fraud in your company. Be alert and suspicious of any unexpected activity, as fraud can come from anybody and anywhere around the world, not only unrelated third parties. It could be unwitting employees, suppliers, or even consumers that are the cause of your company’s demise.

#EntrepreneurSafetyBusinessSecurityCyberAwarenessFraudPreventionPaymentFraudRiskManagementSecureTransactionsSmallBusinessTips