By financen | December 7, 2015 - 5:25 pm - Posted in Business

Unfortunately, fraud can affect all businesses, both large and small, and can have very costly consequences for your company’s finances and reputation if word of the fraud gets out; especially where fraud directly affects your customers. Many fraudsters thrive on and feed off of the reluctance of business owners to deal with a potential security breach within their business. However, fighting fraud and securing your business should be standard practice.

Assess your risks

The first step you should take is to determine the areas in your business that are vulnerable to fraud. You could start with common risks, such as payment exchanges with suppliers, POS cash payments from customers, and other areas that involve the exchange of finances. Invest in a counterfeit detector to ensure you don’t receive fraudulent bills and remember that fraud doesn’t always have to be on a large scale.

Theft or exchange of business products (asset misappropriation) by staff is very common and schemes where employees steal or exploit your organization’s resources, or make fictitious expense reimbursement claims need to be addressed. While this type of fraud is often overlooked, as it is less costly than corruption cases, or financial statement fraud, the effects of it can add up greatly over time. Tightening security at entry and exit points, as well as establishing guidelines can make a big difference.

Come up with an anti-fraud plan

Once you’ve determined the areas you need to focus your attention on, it’s time to create a fraud prevention policy. Write it down for the employees as well. Whether your staff have to start using counterfeit money detection products, or need training on ethical behavior, a policy in place can be a good guide and deterrent. If you need expert guidance, you can consult with Certified Fraud Examiners, who can help you find out where your company is most vulnerable and assist creation and action of your plan.

Make examples

Business owners may be reserved when it comes to raising the issue of fraud with their staff or customers for fear of coming across as untrusting. But one of the best ways to approach this issue is by being open about it. Customers can take advantage of employees when exchanging cash for products and employees can do the same, so purchase a money counting machine that records every transaction for both parties to see. This will make he said/she said arguments a thing of the past. And making examples of any employees or customers who abuse this rule will be a deterrent to other people.

Maintain the culture

Maintain positivity and open communications in your company. Organizational structure and policies should be followed. There’s no sense in creating an anti-fraud plan and handing out a copy to everyone involved and then not respect it. Carry out random assessments, follow the protocol. If you do still find cases of fraud, think about installing CCTV cameras in your offices or stores. Will these tips in mind, you can take charge and work to fight against fraud and secure your business.

Michael Peggs is the founder of digital marketing agency Marccx Media, where they specialize in SEO and Content Marketing. Before Marcxx, Peggs worked at Google in business development, forming digital media and advertising partnerships. He is also a blogger and podcaster, hosting the iTunes Top 10 New & Noteworthy podcast You University – The Personal Branding Podcast.

This entry was posted on Monday, December 7th, 2015 at 5:25 pm and is filed under Business. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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