How to prevent Business Fraud
Fraud is one of the most common ways that businesses lose money these days. So how can you prevent business fraud? Here are our top tips:
- Always be sceptical – If it’s too good to be true, it likely is, as the saying goes. Make sure you question any deals or opportunities that come your way.
- Have a thorough understanding of how your business works, so you know how it operates, the products and services that you provide etc this will help you to realise if there is something wrong.
- Implement internal controls to help safeguard your company that can prevent or detect fraud. This includes restricting access to financial account data, inventory access, establishing multi-person sign-off on expense reimbursements, overtime, and other accounting or payroll functions, and performing an overview of audit logs to ensure the integrity of the books.
- Know your customers and suppliers so that you can spot if a business request looks odd and might be fraudulent.
- Protect your credit card information, be wary of who you provide your credit card information to and always use secure, online bill payment services eliminating potential for fraud.
- Secure and protect your business equipment including PCs, laptops, smart phones etc. Ensure these items have business insurance in place as well just in case they get stolen.
- With increasing threats from cybercriminals ensure your business has the right protection in place.
- Consider what you need to do should you need to get professional or legal advice. Whilst its always best to prevent these things from happening, you always need to be prepared should the worse happen.
If you would like to discuss anything mentioned about business fraud please get in touch with our team.