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How To Help Protect Your Business From Fraud

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Fraud is a worry for all business owners. It can be carried out by a member of staff, the public, or a business associate. Fraud can ruin businesses, so here are a few tips on ways to reduce the risk of it happening to yours.

Stealing Goods

If you are a retailer or wholesaler, one of the ways fraud happens is goods being taken off the premises without being paid for. In a store, you hope that a member of staff might spot a customer stealing, but that is not always the case. CCTV can help as not only will it show the theft, but also you will have a record of it for the police. The same applies in a workhouse or storeroom. Cameras act as a deterrent and will hopefully deter any would-be thieves.

Financial Theft

This can be one of the hardest types of fraud to detect. If you trust someone to pay your suppliers, for instance, how can you be certain they are not making a bank transfer to themselves, or a friend, at the same time? You should always check the payments yourself before the confirmation button is pressed, and don’t leave all your businesses financial matters to just one employee. That way, at least if one person is dishonest, it might be picked up on by another member of your team.

The problem is that financial accounting fraud can be very complex, and you may well need the services of someone trained to route the anomalies out. If you read the forensic accountant job description first, you will know what skills to look for in a professional. It is much better to put safety check systems in place though, to avoid this happening to your business.

Identity Theft

People tend to think of identity theft as something that happens to individuals, but it is just as likely to happen to a business as well. Just imagine someone buying a very expensive car in your company’s name, and by the time you find out the plates have been changed and it is in another state? They only need to few details about your business, such as bank information and profits, to be able to do this sort of thing, so make sure you keep all sensitive information in a very safe place.

Other Ways To Help

There are a few things that all business owners can do to help reduce the risk of fraud. Always carry out background checks on new employees, particularly if they will be involved in the financial side of your business.

If you run a cash business, train your employees to look for counterfeit money or stolen credit cards. Have a procedure in place to deal with this eventuality. Always keep a check on your stock and supplies, to make sure what you are being charged for is being delivered, and that none of it is walking out the back door.

It is important to set up monitoring systems in all parts of your business if you want to reduce the risk of fraud, but it is even more important that you make sure you use them.

Comments (3)

  • Awesome article. Covers everything in detail. Almost reminded me of my early days in blogging. I think you should do a part-time job as well as focus on marketing a single software or product related to your topic.

    Reply
  • This genuinely an awesome experience for me, as you have shown us the way to writing and evidence

    Reply
  • Nice tips to protect our business from fraud. Great informative post, keep it up sir and thanks for sharing this info with us.

    Reply

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