The advances in technology have made it easier for scammers to get into your system and take control of your financial information. With employees working remotely, businesses have fewer internal controls in place, and this has also led to a rise in the cases of business fraud.
Fraud can lead to identity theft and can also cause a huge business loss. No company is completely immune from fraud risk, but it is essential to take the necessary steps to mitigate this risk. Here are 6 ways you can protect your business in advance against fraud.
1. Segregation Of Duties
When it comes to business operations, it is important to ensure appropriate segregation of duties among the team members. There should be no single person who has complete oversight or responsibility when it comes to accounting or finance. Have a review and approval system in place.
2. Know The Employees
It is important to really know the team members in order to protect the business from fraud. Always conduct background checks when you hire new employees and if the results indicate poor credit, do not go ahead with them.
3. Layout Internal Controls
Having strong internal controls in place is the right way to protect your business from fraud. Take a good look at the procedures in your organization and the steps you are taking to prevent fraud. Your business should have the best possible procedures to mitigate any type of risks that may be prevalent. It is equally important to work on these policies and procedures from time to time so as to ensure that they are relevant today.
4. Check Invoices And Vouchers Thoroughly
Some of the biggest frauds that happen in a business are financial and in order to prevent them, you must check the vouchers and invoices in detail. Do not make the payment unless you are certain of the goods or services received. While making payments, consider using secure checks to avoid the chances of fraud.
5. Train Your Employees
One way to protect your business from fraud is to familiarize yourself with common frauds or scams and educate your team about the same. Be honest with the organization about how frauds are happening today and where the business may be weak to prevent them. Train the employees to be prepared in case of fraud and educate them about the steps they should take in case they compromise important business information. You can consider anti-fraud training or schedule a dispute resolution masterclass to ensure that everyone is aware of their responsibility.
6. Review Company Bank Statements
Schedule a bank statement review from time to time as it can immediately reveal any unusual activity that could indicate fraud. As a business owner, you are well aware of the nature of your business and the expenses that you incur. Hence, it will be easier for you to identify the activities that are outside the scope of business, and it will help save a lot of money. It might only take a few minutes each month but can be beneficial in the long run.
Outcome Of Preparing
As a business owner, if you are well prepared, there are minimal chances of being a victim of fraud. Even if there is a small chance, you will be able to handle it well with the security system in place. But if you do not take the right measures, it could put you in trouble with regard to finances and crucial business information.
At the end of the day, it is all about laying out the right practices and procedures to enhance business security. Even if you have the best security in place, you need to monitor the activities in your organization and by doing that, you can simply resolve many underlying issues. These practices will help ensure you go a long way when it comes to your business and protecting yourself from fraud.
