Fraud is something that can potentially hit any business. There is no shortage of people out there who would gladly steal money from your business if they had the chance.
That’s why it’s so important to understand the different types of fraud and how you can avoid them. Read on to find out what you need to know.
Types of Fraud
There are many different types of fraud. Most of these happen inside the business and are often perpetrated by people you know. For example, people who have access to the money and accounts can falsely state the amount of money there. If they do this, they can then steal money without being found out.
Employees can also exploit the company’s resources. And there can also be external efforts to fraudulently take money from your business. The following steps will help you to mitigate the threat you face.
Set Up an Employee Reporting System
As I mentioned above, many of the incidences of fraud that occur happen inside the business. And your employees are the ones who are most likely to have access to your money and accounts.
So, you need to have a strong system in place that allows employees to report things they’re concerned about. This is not about encouraging people to spy on one another though.
It’s simply about ensuring that people can report issues in confidence if there is something that they are concerned about.
Implement Strong Controls
You should also make sure that you or someone you know exercises firm controls over money. You can’t afford to put someone who you don’t really trust in charge of keeping your finances in line.
It’s also important to make sure that you control who gets access to this money and information. Only people that you have authorized in advance should be able to access your accounts and cash.
This helps to ensure that you know who has access and who doesn’t. This will help if an act of fraud is committed.
Count Money Carefully and Always Double Check
You can’t ensure that your money is safe and secure unless you know exactly how much you have. When you are sloppy, and you don’t know how much money you should have, that’s when fraudsters can get away with stealing money.
Whereas if you’re on top of your finances, you will not give the fraudsters that opportunity. So, make sure that you are accurate and precise with your figures. This can be done by using iTestCash money counters. And then always double check.
One of the threats that your business now faces is a cyber threat. Criminals and fraudsters often now turn to the internet to find new ways of committing acts of fraud against companies.
You should be aware of things like phishing scams that can catch you out. If you click a false link and enter your financial details, you will be handing over that sensitive data to fraudsters.
Banks and payment organizations will never ask you to follow a link in an email and then enter financial details.