A Business Owner’s Guide to Fraud Prevention: 7 Strategies You Need to Know

Fraud can be an insidious drain on any business, regardless of its type or size. As an owner or executive, you’ll need to make anti-fraud practices a core part of operations. Fortunately, implementing the following strategies and systems within your organization can help identify, stop, and prevent fraud.

Separate bank accounts

Keeping fund types separate helps minimize loss in the event of a security breach. For small businesses, this dissemination typically means separating business and personal bank accounts. With larger organizations, you’ll want to implement measures such as placing limits and automatic alerts on company credit cards.

Enlist a mobile notary

Use a mobile notary whenever you need to sign contracts or other important documents. A reputable notary company such as Superior Notary Services can verify each party’s identification and the originality of the document. Additionally, an impartial notary can verify that each party is entering the contract of their own free will and not while under duress.

Most mobile notaries are certified across a broad array of categories beyond general services, such as real estate and structured settlements. Plus, because mobile notaries come to you, meeting with them is convenient. If anyone ever tries to contest the legal documents you’ve signed, you’ll be glad to have the official notary stamp on all of your paperwork.

Use independent auditors

Independent auditors can help detect fraud by identifying discrepancies between the inventory and cash documented and what’s actually available. Additionally, an auditor can check for internal issues such as vacation balance errors. Aside from regular audits, surprise audits are also useful in detecting fraud, though it’s always better to know sooner than later.

Guard your company computers

Protecting business data depends on two key elements. First, you’ll want to make sure you’re using up-to-date, appropriate systems such as firewalls, antivirus software, and other tools. Secondly, train your employees to use proper safety protocols, such as how to recognize phishing attempts and when to change their passwords.

Introduce anonymous reporting systems

The majority of employees are honest and want to do their part to help prevent fraud. Creating a system where team members can report suspicious activity can help you identify issues that would otherwise remain out of your view. Whether electronically or via a physical box for notes, make sure employees remain anonymous when using the system.

Utilize physical anti-fraud measures

While many anti-fraud practices rightfully focus on computer security, you shouldn’t overlook the importance of physical security, which is often fairly low-tech. Implement secure entry points with a key card system that time-stamps each employee’s movements in and out. Also, use shredders to destroy sensitive documents in-house.

Conduct employee background checks

While a criminal background might not necessarily disqualify an applicant, you don’t want any surprises, which is why experts recommend running background checks on potential hires. Background checks are only necessary near the end of the hiring process once you’ve selected a few final candidates. Keep in mind you’ll need the applicant’s permission to conduct a background check.

Before you go

An estimated 60% of all fraud losses are never recovered, which means prevention and monitoring play an outsized role in protecting your company. Fortunately, by diligently utilizing the anti-fraud techniques above, you can safeguard both assets and employees.



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