How to Spot Financial Fraud in Your Business

There are many things to look out for when you own a business, or even if you work in a company as a regular employee. Fraud can happen anywhere and at any time, but it is especially prevalent in small businesses. This is because it can be easy to have internal theft where there aren’t a plethora of security measures and controls in place. There are ways, thankfully, that you can look out for fraud in your business’s finances.

  • Increase eyes on financial records: In small businesses there are usually only one or two people handling the business’s finances, such as the sales receipts, payroll, deposits, check writing and any other cash activity in the accounting system. In order to reduce the chance of fraudulent activity, make sure all cash transactions are reviewed by others.
  • Conduct strict background checks: You want to instill the idea that everyone is being watched, no matter what position you have in the business. Anyone with access to financial and important assets should pass a background check.
  • Implement additional internal controls: Install an internal control process or fraud prevention program in all technology that is used by your employees. If you’re unsure of how to put this in place, don’t hesitate to hire a professional to install it for you.
  • Have a positive work environment: Sounds counter-intuitive, but if you want fraudulent acts to be at a minimum in your workplace, you should create positive relationships with all of your employees. This will instill trust in the work environment, and it will decrease the likelihood of anyone trying to perform financial fraud. Also, get to know everyone on a personal level; this will further ensure that you know everyone’s personal background and the possibility of them committing a crime.

In conclusion, it’s crucial to realize that fraud does not discriminate; be aware that anyone in your office space could commit this crime, whether intentionally or accidentally. If you believe that you or another employee have become victims of financial fraud, you should contact our consumer protection attorneys today so we can help protect your rights.



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