Stay Mindful: Three Simple Types of Fraud That Can Dismantle Business Operations


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Operating a company is stressful enough when every process runs easily. On the other hand, when you are a business owner, unpredictable events are bound to happen. You must prepare yourself for each likely circumstances, and of course, that includes fraud.
In the world of business, fraud is not as uncommon as you may think. It is essential that you understand how to anticipate and deal with criminal deceptions if it propels your way.
Business representatives and clients are just some of the many people who may and can take advantage of every particular organization. In case you own a business, whether small or big, keep in mind that it is way safer for you to be knowledgeable in the kinds of business fraud and as well learn how to defend yourself.

Here are some types of typical fraud in business that you might encounter:

Identity Theft

Identity theft can cost your company loads of money. Fraudsters are capable of stealing your organization’s identification and utilize it to obtain your resources and your assets.
People may lay their hands on vital information like bank statements, government’s tax identification numbers, or your financial statements. It is also likely to have data taken from your network.
In preventing identity theft, assure that you keep your sensitive information and statements securely. If you have hard copies, it is safer to keep these files secured in filing cabinets or lockers that you alone can access.
When it comes to soft copies, make sure that you practice complex usernames and passwords, and keep in mind to avoid falling for suspicious attachments or link that requires you to giving out important details, known as phishing scams. The best way to is still not to hand your specific details to anyone.
Fraudsters could as well obtain access to your business bank account if ever your workers lose their paychecks. Keep in mind that paychecks are very sensitive because they have the routing and bank account numbers of your business.
If a lost paycheck gets into the wrong hands, fraudsters could access and withdraw money from your bank account. To limit its damage to your business, consider separating your payroll account from the rest of your business’s money.
Having a segregate salary account indicates potential fraudsters can simply obtain access to a limited amount. You just deposit adequate funds to meet employee paychecks with a payroll account.
Also, you might as well recognize paying employees through direct deposit rather than paychecks. Through direct deposit, you set the worker’s earnings straight into their record. If you do it that way, then you don’t need to pass out checks that contain confidential information.

Money Fraud 

Money Fraud

Money scam can occur without you or the client even noticing. On the other hand, counterfeit bills are of no use when you move to transfer the funds to the bank.
The most popular counterfeit money are high-valued like around $100. If you take counterfeit bills, you will not gain any profits from the deal. Worse, you may end up giving authentic money as an exchange for fake money.
Safeguard your tiny company from money fraud by determining how to recognize if a bill is real or fake. There are several characteristics you must be capable of spotting on legitimate currency, such as watermarks, raised printing, color-shifting ink as well microprinting. 
Additionally, you can also train your agents to check cash before receiving it. If you need assistance concerning finance, then it is best to seek help from financial advisors like Ashe Morgan.

Payroll Fraud

Payroll systems are twice as prevalent in tiny companies as opposed to big businesses. There are a couple of different methods that payroll fraud can happen in your company.
Workers may request for salary advances without paying them back. Or, agents may lie regarding their hours rendered on their time sheets. Representatives could as well have their colleagues to clock in for them even if those workers are not at work.
It is best to perform history investigations on every employee before hiring them. Also, you must audit and examine payroll records so you can intercept deceitful act quickly.
Do not wait until your company has dispensed enormous amounts of cash before you begin monitoring things.


Whether your company is big or small, it is safer to keep in mind that frauds and scams know no type of business because these fraudsters only want one thing, and that is to acquire easy money.
If you are a proprietor, it is best to know these basic fraud schemes for you also to pass your knowledge onto your business representatives to keep your business operating smoothly and hopefully prosper.

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