(Newswire.net — September 9, 2021) — It is not easy to run a business in an era that is characterized by fraud and fraudsters. One of the most serious issues that can make your business lose money is fraud. While a business can help you reach your money goals, there are also times when you may have to deal with bigger issues like business fraud. It is the act or intent of misrepresentation where fraudsters lie about themselves or their services or actions, to cause a loss or gain to the business.
The fraudulent activities are usually attempted to offer an agreeable financial result to the businesses and people involved. There are schemes that fall under the guise of legal business practices, thereby making it tough to spot. A few of the crimes which fall under corporate or business fraud are as follows:
IDENTITY THEFT
This is certainly one of the most common types of fraud faced by businesses. If left unmanaged or unaddressed, this can make your business lose a fortune. The fraudsters or the identity thieves involved in this act steal your business identity and use it as a means of consuming up your credit.
Fraudsters usually receive access to details like government tax identification numbers, bank statements, and financial statements. If you are keen on preventing identity theft, you have to secure sensitive information and statements of your business.
Physical copies should be locked inside cabinets and digital copies should be made accessible to a handful with passwords and usernames. Don’t leave any stone unturned to avoid being prey to phishing. Businesses should join hands with cyber solutions companies like Funds Back to stay protected and secure.
EMBEZZLEMENT
Illegitimate use of your business funds by someone who has control over it is called an act of embezzlement or fraud. If there is a business bookkeeper and he secretly uses the business funds for some personal reason, this can be an example of fraud. Cases of embezzlement are usually kept secret as they include people holding high positions within the organization.
As they end up feeling embarrassed once their activities are revealed, they try their best to mend matters privately without letting anyone know about it.
MISAPPROPRIATION OF ASSETS
This is a type of fraud that happens when one of your employees abducts funds from the company. This is yet again one of the most common kinds of fraud that comes in different forms. This can be done through a forged check where an employee gets a company check and makes himself the payee of the check. He duplicates the signature of the actual owner.
You can detect this to be occurring in your company when you see that there are checks that no longer reflect within the approval system of your company. You can also check whether or not the checks of your company have any unusual payee names on them.
PAYROLL FRAUD
Small businesses usually see payroll fraud where employees ask about pay advances without their settlement. There are situations when the employees hide the actual number of hours for which they’ve worked.
Another kind of payroll fraud includes a situation where some other employee clocks in for an employee who’s not present physically in the office.
If you want to stay away from such things happening in your company, you should consistently keep performing background checks of all employees before finally hiring them. A key to detecting such fraudulent behaviors right away is auditing payroll accounts. You may also join hands with a fraud detection company like Funds Back after checking their Funds Back reviews.
When you have already implemented fraud prevention tools and still the numbers aren’t decreasing, it implies the need for professional interference. Certified fraud examiners and CPAs can offer you an extensive help in detecting fraud and even in prosecution if required.