Tips on How to Prevent Business FraudOctober 12, 2021 No Comments
Featured article by Bernadine Racoma, Content Manager of eTranslation Services
One of the challenges that businesses face is the risk of fraud. There are different types of fraud, and they all bring a negative effect on the company. Some of the most common are cash theft, forgery, inventory theft, and check tampering. There are also frauds committed by hackers and third parties that aim to make money out of the business’ expense or get their essential details to be used fraudulently. However, there are ways to prevent it in your company, and here are some of them.
Perform a background check when hiring employees
Not all companies do a background check during the hiring process. Do not skip this critical step because it will help in preventing fraud in the company. Calling previous employers and the candidates’ references will give you a better idea of who they are and their work ethics. You will also know if there are red flags you should worry about, which you must consider in making your decision.
Have various trusted individuals handle the accounts
Take time to get to know more about your employees to ensure that they are trustworthy. Also, to lower the risk of fraud, delegate the management of your accounts to various individuals. If only one person is responsible for everything, like the inventory and accounts payables, it will be easier to manipulate the data. If there are more people involved, they will be accountable to each other.
Get the help of the specialists
Some experts specialise in detecting and preventing business fraud. They may use a fraud management system to see potential threats and block them. For example, the system may prevent phishing SMS that could hack credit card information or other important company data. It’s also important to use an updated anti-virus program to avoid infection and identity theft in your network.
Telecommunications is a vital part of any business. Besides phishing SMS, another common fraudulent activity in this area is called the Wangiri fraud. A missed call will register on the user’s phone, and if called back will incur huge charges. There’s also the PBX hacking where hackers use the line to make outbound calls. The company will also have higher bills due to that. An efficient system for managing fraud can prevent these things from happening.
Let employees know the consequences of committing fraud
Your company must have a strict policy when it comes to fraud. Ensure that employees are aware of it and the results from committing it, so they will not be tempted to do it.
Use secured automated payments
Entrust only trustworthy individuals for using the company’s credit card or bank accounts. If possible, set up automatic payments for overhead expenses, so there is no need for someone to do it for you. Plus, it will also prevent late or missed payments as they are automatically debited from your account.
Perform regular auditing
To increase the sense of accountability of your employees, perform a regular audit. It will make them think twice about fraud because they know you will check the reports. You will also have a better view of the progress of your business.
Review bank transactions online
You may have printed bank statements or reports on income and expenses. However, these printed copies can be manipulated. Log in to your internet banking, and review the transactions there. Do this regularly, so you will be on top of everything, and investigate right away if you see anything questionable.
Business fraud is real, and it could be done internally or by outside sources. Therefore, be vigilant, and incorporate preventive measures to avoid fraudulent activities in your company.
Bernadine Racoma is the Content Manager of eTranslation Services. Her long experience in an international development institution and extensive travels have provided her a wealth of knowledge and insights into cultural diversity. She writes to inform, engage, and share the idea of the Internet being a useful platform for communicating, knowledge sharing, educating, and entertaining. You can find Bernadine Racoma at Google Plus, on Facebook and Twitter.SECURITY, SOCIAL BUSINESS