Fraud is a serious problem that could bring down businesses of all sizes and types. There are different types of management and financial fraud that could badly affect your B2B business. From workers’ compensation, returns, fake money, payroll fraud, to identity theft.
Fortunately, this serious problem can be prevented if your business has fraud management and prevention plans in place. It’s less expensive and easier to prevent fraud in your business compared to repairing your reputation and finances after the problem has occurred. With the right plan, you’ll be able to lessen the risks of fraud happening. Thereby reducing the losses from fraud that have already arisen.
If you want to ensure that fraud is less likely to happen, below are some of the most important considerations for management and fraud prevention in your business.
Most of the people working for your business, like CPAs (certified public accountants) and CFE (certified fraud examiners), play a crucial role in establishing anti-fraud procedures and policies. But, not all of them have the experience when offering services that are best for your needs.
Hiring fraud examiners, accountants, and any other professional, means they'll gain access to confidential or sensitive business information, like bank account numbers. Always ensure that these people or firms have a reputation built on trust and quality service. That way, you can feel at ease, knowing that your financial consulting services, forensic analysis, and internal control audit are systematic. Meaning your business information won’t be compromised.
Perhaps, the most crucial and easiest step to prevent fraud in B2B is to verify all the details provided by new clients. If you’re planning to make a huge sale without collecting any amount upfront or extending terms to other businesses, make it a habit to review and examine the information provided.
From the name of the representative or owner and business to the physical location of the business, ensure everything is accurate. But, if you feel that there’s something wrong, don’t be scared to ask or make a Google search. In addition to that, if a representative contacts your business saying they’re with a government agency, or a credit card or bank company, always verify legitimacy. Request this before you provide any confidential information.
As a business owner, you can’t always be on the front line of your business. However, you should be able to trust your workers so they can efficiently do things in your absence. By educating yourself, and those who work for you, on management and fraud, you prevent serious problems from occurring. Doing so will help you remain confident that your worker will protect your business even if you’re not around.
Aside from conserving the cash of your business, using credit cards may also reduce your risk of fraud. Some credit cards come with free fraud detection. Nevertheless, if you’re not contented with the level of available service. Research and choose a different company. There are lots of companies you can work with that offer such services for fees.
It’s very easy to allow invoices to stack up, assessing them thoroughly before you pay them just before they are due. Unluckily, such behavior can simply leave you, as well as your business, a fraud victim. Therefore, review every invoice thoroughly as it comes in and confirm whether it was received by you or one of your employees.
Moreover, always check your business bank accounts for any suspicious charges. If you notice signs of fraudulent activity, immediately contact your bank.
One of the powerful steps you can do to fight fraud is to automate customer transactions. Electronic payments and applications offer new opportunities for fraud. Especially as possible scammers don’t need to deal with the inspection that usually comes with human interaction. But, with automation, a new set of powerful tools can detect potential fraud attempts as soon as possible. Businesses can even use aml screening software to identify users who might be money launderers, criminals, or fraudsters. As a result, you can ensure safe transactions and protect your business at every step.
A B2B business that has an automated eCommerce platform should consider incorporating a fraud indicator into its payment management systems.
By considering the things above, you’ll be able to prevent fraud from occurring in your business. All businesses are susceptible to different types of fraud. But, as long as you have plans and know what you’re doing, you have nothing to worry about because everything is in good hands.
