Top Ways to Avoid Any Fraud in Your Business

Top Ways to Avoid Any Fraud in Your Business

Running a business has its ups and downs, both of which you’ve since come to accept ever since starting one. However, one kind of down moment in your business that simply isn’t acceptable is fraud, a deliberately harmful action that aims to make your business lose a significant amount of money. Whatever kind of fraud someone plans to commit against your business, here are some of the top ways to avoid it:

  1. Secure all your business’s financial and banking statements.

Whether you’ve got physical or digital copies of your business’s financial and banking statements, you’ll want to keep them under lock and key so that only you can access them.

  • For physical copies, you should store them in either a filing cabinet or a vault with a combination lock to seal it shut. You shouldn’t give away the number combination of the lock to anybody else.
  • For digital copies, you should store them as password-protected files. The password of each digital copy should be complex enough that no one can open it but something that you can easily memorize at the same time.
  1. Get to know each of your business’s employees before and after hiring them.

As much as you want your business to have more employees than what you have right now as part of its growth, you shouldn’t assume that every employee of yours shares the same vision as you do.

  • Before hiring a potential employee for your business, you should do a thorough background check on them to find out if they’ve committed fraud or any other grave offense in any of the previous jobs that they held.
  • Once you’ve hired an employee for your business, you should check on them from time to time by engaging in small talk so that you can spot by their actions or even words if they’re planning to commit fraud against you. However, you should be careful when doing this as an employee of your business has the legal right to defend themselves with the help of a competent defense lawyer from the accusations of fraud that you’ve hurled against them.
  1. Learn how to easily spot if any money handed to you is counterfeit or not.

Every coin and paper bill that your government has put out contains a set of security features to protect it from being duplicated by fraudsters.

  • Whether any of your business’s customers have intentionally handed you counterfeit money or if they were but mere victims as well, you should check first if the cash that they’ve given to you is real or fake.
  • You can either do a visual inspection of every coin and paper bill handed to you by your business’s customers or use a money detector machine.

According to a study conducted by the Association of Certified Fraud Examiners last 2016, several businesses all over the world lose up to hundreds of thousands of dollars due to fraud. Starting a business costs money. Thus, it’s only right that all profits that your business has been generating should go to you and towards the betterment of your business. However, if your business is losing money, it might be that someone who’s privy to your business’s ins and outs is stealing money from you. You can protect the profits that rightfully belong to your business by doing the above-listed top ways on how to avoid any fraud from being committed against it.

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