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4 Tips for Protecting Your Small Business from Fraud

 

(Gloucestercitynews.net)(August 22, 2019)--Corporate security surveys indicate that more than half of all businesses have been victims of fraud at some point or another. Furthermore, almost a quarter of those businesses have suffered monetary losses of more than $1,000,000. Statistics like these highlight the very real need for business owners to focus intently on fraud prevention in their everyday affairs. Unfortunately, the vast majority of small businesses simply aren't aware of the risks they're facing. Luckily, you can greatly reduce your chances of falling victim to fraud by taking the following preventative measures:

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1. Use an Online Fraud Monitoring Service

Keeping track of your brand's online presence and protecting company computers from malware, phishing, hacking, and other forms of cybercrime should be at the top of your list of priorities when it comes to fraud prevention. Fraud monitoring services like the kind provided by FraudWatch International can proactively ensure that no one is impersonating, defaming, or stealing from your brand on the web. With data breaches and other forms of online theft becoming increasingly common, cybersecurity is now a top concern for businesses of all sizes.

2. Thoroughly Screen Prospective Employees

Hiring nefarious employees is the fastest way to expose your company to a higher risk of fraud. The people who work for your company have inside access to your corporate systems, schedules, and equipment, so they're in an ideal position to defraud your business if left unscreened and unmonitored. Thus, carefully screening all prospective employees and enforcing responsible hiring practices are protective steps that every fraud-conscious company should take.

3. Practice Detailed Record Keeping

Keeping track of all transactions, balances, dates, and other critical details can help you uncover wrongdoing during a retrospective review of employee or customer/client activity. Use accounting software, server access logs, web analytics, and other record-keeping tools to keep track of your company's most important metrics. That way, you'll have a reliable means of confirming the accuracy and legitimacy of all actions that affect the financial standing and reputation of your business.

4. Obtain Adequate Business Insurance

Finally, even if you take all of the steps above, there's still a chance that you could fall victim to the negative financial effects of fraud. In that case, having a comprehensive business insurance policy to cover the cost might be your only saving grace. Shop around for business insurance policies to find one that suits the coverage needs of your company, and be sure to examine any clauses related to fraud protection to avoid common insurance pitfalls.

Fraud Can Be the Downfall of Your Business

Business owners who have never fallen victim to fraud have a hard time understanding the importance of fraud prevention because it seems to be an issue that has no impact on their company. However, fraud always hits when least expected, and usually without any form of precedence or warning. Remember that there's a first time for everything, and the first time you encounter fraud could represent the beginning of the end for your business. As such, it's best to heed the tips above to ensure you're prepared to prevent or mitigate any form of fraud going forward.

image courtesy of unsplash.com

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