How To Protect Your Business From Fraud

A survey conducted by ACFE shows that companies lose about 5% of their annual revenues as a result of different fraud schemes. These findings should serve as a warning to every business owner that they have to increase the level of their protection from such actions. The protection has to contain cutting-edge features, provided by reliable companies, since modern scammers have sophisticated methods for stealing your assets.

Impenetrable for outside hackers

Due to a substantial increase of ecommerce businesses and digital buyers, the most hazardous fraud area is online shopping. In this environment hackers usually aim at identity theft, as well as obtaining your use names, credit card numbers and passwords for different bank accounts. What every business needs to ensure is to keep as little information about their clients as possible. Also, it goes without saying that payment methods have to be protected by firewalls and other anti-hacking features.

Moreover, national governments also understand the dangers that digital buyers are exposed to, so many governments have brought laws that oblige companies to inform their clients in case of any data thefts or hackers’ attacks.

Insider’s revenge

A study published by the Wall Street Journal and conducted by Kroll shows that about 80% of the companies that experienced fraud in 2014 had problems with insider’s wrongdoings. There is a reasonable explanation for such results. Nowadays there are more small and mid-sized businesses than ever before. Due to a smaller number or employees in such enterprises, there has to be a high level of trust between manager(s) and employees. The more people possess confidential business information, the higher is the possibility that they will abuse it. Therefore, if a business owner or CEO wants to increase the level of their business protection, their employees need to sign a non-disclosure agreement. It will make the employees aware of the legal consequences of any kind of insider’s tricks.

Cash and assets control

Due to a prevailing customer-centered approach to commerce, employees often fail to spot a foul check, a stolen credit card or counterfeit money. Such mistakes can be pretty costly, both in term of your finances and your reputation. In order to dodge such unpleasant consequences, you should organize a short course to ensure that your workers can recognize a bad check. A similar procedure has to be applied when they are dealing with bank cards, too, as well as any other form of payment. These SBA guidelines can help business owners educate their staff on the threats and fraud incidents they can come across in their offices.

Unreliable outsourcers

Since modern businesses collaborate with one another on the global level, more often than not they opt for outsourcing. While benefits of such business strategies are clear, those deals can be pretty expensive if you do not protect your data and interests in a proper way. For instance, if you need to hire a cleaning company for your business premises, you should sign a long-term contract with them. This is the most convenient way to get an affordable price for their services. However, you can never tell whether or not they will do their tasks on time. This is only one example where business owners should insist on surety bonds. That way the hired party will be legally and financially obliged to meet the agreed terms.

There will always be people who want to make a profit in a dishonest way. Although you cannot fight this fact, what you can do is invest time and assets in protecting your business as much as possible against such schemes. Finally, it is easier to run your business in a productive and creative way when you that both you and the business are secure and well-protected.

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