7 Fraud Prevention Methods for Your Business

fraud prevention

Fraud is a problem faced by any individual in life, and particularly within business. No matter your industry, team-size, product, or service, there is always the opportunity for fraud, which means that the best prevention methods should always be taken.

1. Always Get a Second Opinion and Avoid Employees Checking Their Own Work

The more individuals you have designated to checking work, the bigger your fraud prevention capabilities will be. Using other employees or designated individuals to check work means that not only will you have more than one pair of eyes ready to notice anything unusual, but it will also be a deterrent for any employees considering fraud. Segregation of duties is paramount for fraud prevention, especially in the area of cash handling. For instance, you should aim to have one individual handling the cash register and a separate individual totaling the till and checking transactions at the end of a shift. To have one individual responsible for everything encourages the opportunity for fraud to go unnoticed.

2. Implement a Notary

A notary can act as a witness to the signing of any important documents. This is an essential fraud-prevention method, as a notary is able to authenticate any important documents, whether they be contracts or general business documentation, and their appropriate signatures. Find a notary with this link

3. Don’t Take Anything At Face Value

You may never suspect a model employee who has never had a sick day, or a day absent from work as someone capable of committing fraud. However, it’s clear by now that nothing should ever be taken for granted, especially within a business, and even the most model individuals can be capable of crime. Therefore, treat all employees the same with the same fraud prevention tactics, no matter how hard or impressively certain employees work compared to others.

4. Instigate Background Checks 

If your business hires a high number of employees, expressing the requirement of a background check will limit the opportunity of employment fraud, such as a hired employee failing to declare a criminal conviction on their application. By making it clear that background checks will be carried out, every potential employee will know that they cannot omit any information from the first point of their application. 

5. Protect Your Online Activity 

Always be cautious when using business information, such as financial information, online and ensure that you create strong passwords and implement online security for your day-to-day activities. Make sure that you keep track of your business finances in order to quickly identify any anomalies with outgoings or payments which have been made under your business name, so you can quickly identify a fraudulent transaction. Also, make sure that all employees understand the importance of this, too. 

6. Seek External Assistance 

It can only be an advantage to invest in professional fraud-prevention services. A certified fraud prevention officer can help you to implement the best fraud-avoidance techniques within your specific company and offer advice where needed.

7. Promote an Excellent Working Environment 

Employee fraud is less likely to happen if your workplace is a healthy and happy environment. Not only that but by implementing clear and solid structures, techniques and fraud policies, every individual working in the business is operating under the same understanding regarding fraud and criminal activity. Messy workplace environments that don’t have a clear structure and neglect employees and their activities are only encouraging the potential for fraud. Of course, there is never an excuse for fraud, but by maintaining a happy work environment, you’re giving your business the best chance of avoidance.

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