Business Planning Process Planning & Strategy

Fraud Protection Steps for Your Business

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All businesses are vulnerable to fraud, and the effects can be far-reaching. For your business, it could mean a damaging blow to your finances, a knock to your reputation, and legal implications.

When it comes to fraud, many business owners assume it comes from the outside. Ransomware attacks are common, and so is mail theft. However, fraudulent activity can sometimes come from inside the workplace, as employee theft is also an issue, and those at the top can also commit criminal activities.

To protect your business from fraud, the following steps are recommended.

1. Be Diligent in the Hiring Process

Cases of fraud can go unnoticed when you employ people to take on accounting duties. From managing petty cash to recording client payments, there is scope for the person to swindle the business they work for when they manage these tasks alone.

To reduce this threat to your business, the hiring process is obviously key. You should always employ people you trust to manage your accounts, so be diligent with your criminal background checks. Alternatively, pass over your accounting duties to an accountancy firm for extra peace of mind.

2. Research Potential Business Partners

Be careful who you share your business with! While partnering with another business professional can sometimes seem like a good idea, you could threaten your business if the other person isn’t to be trusted. Commit to research first. Google their name and business and look for those news stories that might alert you to their dishonesty. Ask them for references. And visit Better Business Bureau for further background information.

3. Avoid Check Fraud

Check fraud a common challenge facing businesses, and it can happen in a variety of ways.

You might receive a counterfeited check from a third party, for example, or somebody else could intercept and alter a payroll check that you have sent through the mail service. Thankfully, check fraud can be avoided, but you do need to be proactive.

For one, you should learn how to spot a fake check, and you should teach your employees how to spot one too.

Secondly, you should secure the checks you send out to your employees or any other third party. You can do this using the paycheck envelopes provided by Laser Printer Checks, as they are designed with security in mind.

And you should also take steps to learn more about the different types of check fraud in an effort to protect your company and its finances.

4. Protect Your Online Data

Online scams and phishing attacks are common, so care does need to be taken with the data you have on your computer systems. If an employee clicks on the wrong email link, or if a password is accidentally disclosed, your critical data could be compromised, and that could be used to fraudulently harm your business.

To protect your systems, follow this cybersecurity advice. Hire the services of an IT professional too, as they will have the tools needed to better protect your business online.

Don’t let your business come to any harm! Follow our suggestions, and look for other advice online to protect your business from fraud.

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