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Preventing The Risk of Small Business Fraud - Protect Business Resources

Fraud prevention can be a challenging undertaking for a small business. Every business, however, needs to prioritize fraud protection to keep the company safe. Though prevention may seem complicated, organizations can implement a few proven methods.

Hiring Right as Fraud Prevention

The first step in business fraud prevention is hiring the right people. You may think your hiring efforts are thorough enough—but ask yourself these questions to better determine your risk level.

  • Did you conduct a thorough background check?
  • Are you checking prior employment before hiring?
  • Have you confirmed your employee’s references?
  • Do any employees have prior criminal convictions?
  • Have you verified each person’s education and certifications?

These crucial steps can detect fraud before it happens and keep your organization from harm. When selecting your next hire, pay close attention to these questions, and ensure the person both fits the job description and has no qualities that will put you at risk.

Policies for Business Fraud Prevention

Small businesses also benefit from establishing a fraud policy. Policies can outline what the crime looks like and give workers protocols for reporting anything suspicious. You can also inform your employees what constitutes fraud and how the company will act if it has suspicions or determines it occurred. Establishing these policies may be time-consuming, but they have been shown to reinforce business fraud prevention.

Monitoring for Small Business Fraud Protection

Lastly, an essential step for business fraud protection is close monitoring. Performing regular audits, examining cash flow, and approving expenditures are just a few of the ways you can protect your small business. Establishing these internal controls will uncover fraud when it occurs and deter it from happening in the first place. The key to eliminating fraud is eliminating your vulnerability.

You can eliminate your vulnerability with help from Falcon National Bank. Best practices, such as regularly monitoring account activity through our online banking tools as well as our Positive Pay program can help you monitor unauthorized transactions and act when you’ve identified fraud. For more information and assistance protecting your company, contact us now.