How to Prevent Fraud in Your Business


Running a small business is much like a labor of love for the owner. They put a lot of hours and effort into making the company successful and maintaining growth. That is why it can be so devastating when you discover fraud in your workplace. Therefore, it’s hugely important that you try to prevent it as much as you can, or you could lose a lot of valuable information.

Be Clear on Fraud with Your Workers

It is important that you are clear and concise about your company policy on fraud and what will happen if criminal activity is found. Inform them that a full investigation will be carried out which could include hiring a company to perform computer and mobile forensics service. By informing your workers about the risks of breaching the data policy within your company, it will hopefully deter those who were considering criminal activity.

Carry Out Thorough Background Checks

When hiring new staff, it is important that you always try to perform background checks on them. Check their previous employment, their financial state and any criminal records they might have. It doesn’t mean that they shouldn’t be hired, just because of a criminal record, but it could have an impact on the level of security they get. You should also ensure that the worker’s checks are completed before they are permitted to work in case there are any further issues.

Be Secure with Accounts and Cash

There may be some clients or suppliers that need a different way if being paid. It could be via a check or sometimes even cash. It is important that your employees are aware of the risks involved in these transactions and that they act accordingly. Checks and cash should be locked in a safe when not in use and a log kept of their numbers and who the checkwas issued to at the time. If a check in null and void, then this will also need to be entered into the log.

Segregate Duties

Start allocating duties such as computer support, accounts payable and invoice handling so that no one person has complete control over a whole area. It will prevent any possible fraud as there will be more than one check done as you complete the process. It is also vital that your employees mention to management anything unusual that they see while carrying out their duties.

Carry Out Spot Checks

Carrying out spot checks is a great way to identify any errors or unusual behavior and deal with it before it becomes too serious. It is important that you have your employees understand the importance of this procedure so that they don’t feel threatened or spied upon when they have done nothing wrong. You should be open about doing them, but not when they will be carried out.

Although you can never completely free your company from the risk of fraud, by doing these simple steps, you can make the likelihood of fraud smaller.