When it comes to managing a business, you must ensure high levels of trust in all of your transactions and negotiations. You can’t always be confident with who you are dealing with, especially when too much is at stake.
You need to protect your business from all forms of fraud, as it can impact your financials, customer loyalty, and erode your reputation. More importantly, you could face hefty fines if you are proven to have breached processes that are meant to prevent fraud in the first place. Fortunately, there are ways to help you defend your business and reduce the impact they have on your business.
1. Secure your IT assets
Data security must be a top priority in your organization. If you require customers to provide personal details as well as credit card numbers, make sure your IT infrastructure is well protected against possible data breaches. Aside from installing anti-virus software, you may also need to set up a backup server and protocols for preventing unauthorized access to work emails, servers, and other assets.
It’s also important to train your employees on how to safeguard their workstations and spot suspicious links and emails that may cause a malware infection. By setting up the right defenses, you can prevent cases of data theft.
2. Enhance background checks on new recruits
If you are looking to hire new talents for your business, it matters to conduct a solid background check to make sure they are not using false identities. Although you are expected to be fair in selecting candidates who best fit the needs of your business, there’s still a good chance you will end up hiring people who are out to steal information or sabotage your business.
To prevent job fraud, you might want to check a candidate’s LinkedIn profile, reach out to references apart from the ones they provided, and conduct employment and financial verification. You can use a document scanner app to check for the authenticity of their tax forms and medical test results.
3. Protect the premises
Fraud can also take place when your office establishment is poorly secured from criminal elements. In this case, consider installing security systems within and outside the facility. For areas that contain sensitive documents, consider employing biometric scanners and monitor every single person that goes in or out of these areas.
4. Document the paper trail
Financial fraud happens when people within your organization deliberately alter financial documents for different purposes, such as issuing unauthorized purchase orders and falsifying social security claims. Proper documentation can help prevent this type of fraud, so make it a practice to collect receipts and update your accounting records in real-time. You may also need to get an experienced accountant to help monitor your finances, conduct internal audits, and set up processes for approving disbursements and purchases.
With the right tools and strategies, your business has a better chance at avoiding the costly effects of fraud. Start with these tips and protect your business from criminal activity.
