Financial fraud has been on the rise in the U.S. and affecting even small businesses. It occurs when someone deprives you or your business of money that financially harms your venture, small or big. Generally, this is through deceptive, misleading, and other illegal undertakings.
The back office is one of the common types of financial frauds and includes unaccounted for expenses, an indirect transfer of wealth, fake checks, and undertaking illicit business upgrades. Fraud experts cite the lasting effects of cutback and recession that have reduced financial balances, checks, and self-satisfaction as the key contributing factors.
According to Joseph Wells, who is the founder of the Association of Certified Fraud Examiners, there are a number of risk factors that contribute to fraud in small businesses. They include:
- Insufficient financial control concerning how cash is used, improper record-keeping, and bank accounts are handled.
- Inadequate selection of workers during the hiring process. Employers are not doing enough background checks before hiring.
- Trusting the wrong person. What makes small businesses succeed is also the home of fraudulent people who will do anything to harm the business.
A recent study by TD Bank of small businesses owners shows that 75% are taking specific steps to protect their ventures against financial fraud. However, a good number aren’t doing enough to excel in their endeavors.
According to Robert Dunlop, head of Corporate Security and Investigations at the bank, they have to be cautious. With the advent of and surge in new technologies that small business owners settle for, it is important to be well-acquainted with the latest technologies in use. They have to be wary of techniques criminals use and be careful in keeping their businesses safe from fraud.
There are incredible tips to protect businesses against financial fraud they should be well-versed with. And they include:
Make Use of Financial Balances and Checks
Business owners should take time and conduct an internal review of their finances on a monthly basis. Amount used to make payment should match what they have in recorded invoices, and checking for missing documents should be mandatory. Undertaking random audits or hiring professional auditors will help keep employees alert about the consequences of any form of financial fraud. These will keep away would-be fraudsters in the business premises.
Secure Computer Systems and Practice Website Awareness
Business owners need to be well-versed with cyber protection. Many small businesses have fallen victim to cybercrime. The computer system you use should be well-protected with the latest antivirus software and firewalls.
Phishing is a common technique used by fraudsters to obtain business private information. It’s a technique that uses a form of an email to obtain confidential data. Most of them are easy to notice as they appear to contain legitimate addresses or certain titles, but they are all fraudulent.
Protect Sensitive Hard Copy Documents
The digital area is not the only area that is prone or exposed to information breaches. Employees or competitors can still use important data and use it against your business. These will include things like checks, credit card information, or emails.
Mr. Dunlop emphasizes business owners should be wary of the documents they leave behind with photocopiers as they might get into the wrong hands. If you have to sell a copier they have to make sure no important documents are saved in the hard drives.
Opt for Safe Online Banking Platform
Online banking offers a means to safely undertake transactions and keep your financial details safe. Major and reputable banks use numerous security options to keep their customers information safe. Security options that online banking offers include real-time information, better customer care on 24/7 basis, secure payment, and account transfers.
Invest in Proper Insurance
Businesses need to invest in top-notch insurance policies that protect them from losing money due to back-office fraud. Go for an insurance policy that protects your business against theft, forgery, embezzlement, and credit card scam.
Why Business Should Rely on Spokeo Protect
When undertaking background checks, you will need a platform or options that will ensure you undertake an efficient process. Spokeo is a standout that has transformed many companies. With Spokeo Protect you can safely undertake social searches without any worries.
It makes it easy and effective to use phone number search features that make it easy to search people’s backgrounds stress-free.
You will rest assured that you have the right information about an individual using phone number, email, name and address. With Spokeo connection among other features, you get a chance to get connected with all your friends’ social media profiles and in one place.
There are incredible ways to curb business fraud. Many business owners trust their employees and associates that they don’t even protect their confidential data. But why stress where there is an incredible way to check the kind of people you are working with and their records. Spokeo is a one-of-a-kind option that organizes every information you need about a worker, business or consumer you deal with each day.