Securing Your Business Against Fraud

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Is your business secure from the threat of fraud? A recent article from The Balance offers some advice for ensuring that your organization is well protected.

There are many types of fraud that can be perpetrated against a business. Some examples include:

  • Charity Fraud – Fooling a business into donating money to an illegitimate charity.
  • Nonpayment of Funds Fraud – Refusal to pay a business for products or services received.
  • Bankruptcy Fraud – Falsifying and/or destroying records in order to conceal assets or information, in the course of bankruptcy proceedings.
  • Employment Fraud – Falsifying information on an employment application.
  • Insurance Fraud – False claims of an injury in order to collect a financial settlement.
  • Mail and Wire Fraud – Using mail or electronic communications to make false representations.
  • Identity Theft – Stealing private information, such as tax information or credit card numbers, and using it to gain financial benefit.
  • Employee and Insider Fraud – Embezzlement, cash skimming, writing fake checks, and stealing goods or supplies.
  • Customer Fraud – Using bad forms of payment (checks or credit cards), shoplifting, return fraud, and/or filing false injury claims related to a business’ property.
  • Contractor or Vendor Fraud – Performing incomplete work, over-charging for services, and/or billing for services not rendered.

As you can see, fraud comes in many forms and from many sources. So how can you work to prevent fraud loss at your business? The article offers the following tips:

  1. Conduct background checks on all new employees
  2. Make sure that financial responsibilities are spread among multiple employees
  3. Train employees to recognize and screen for fake money, bad checks, and stolen credit cards
  4. Closely monitor your business accounts for indications of identity theft
  5. Review all vendor documents for accuracy
  6. Track supplies and inventory
  7. Create security policies surrounding sensitive data

For more details, read the article in full at The Balance.