Unfortunately, financial fraud aimed at companies is a growing crime. The Association of Financial Professionals found fraud against businesses rose sharply in 2015, with fraud as a percentage of revenues climbing from 1.32 to 1.47 percent year over year. Often perpetrated by smart, tech-wise criminals, fraud costs companies plenty. The Association of Certified Fraud Examiners’ recent Global Fraud Study revealed typical businesses lose a median of five percent of revenues to fraud yearly.
When it comes to preventing fraud against your company, a good offense is often the best defense. Try these strategies to prevent fraud from occurring.
- Educate your employees. You and your staff should be the ultimate defenders against fraudsters. Your employees should be trained about the risks of financial fraud from outside and within the company, how to identify red flags fraud is happening, safe practices to follow and how to report financial fraud.
- Make fighting fraud a daily practice. Review your accounts daily, questioning any suspicious items. Ensure network access for payments is limited to company-owned laptops or personal computers. Routinely review privacy practices, deleting client information that's sensitive or no longer needed. Keep desk drawers and cabinets containing sensitive data locked.
- Work closely with your bank. Finally, view your bank as a key partner in protecting your company against unauthorized financial activities. Your bank likely has programs to safeguard your company against financial fraud, so talk to your bank about how you can join forces to thwart attacks.
Financial fraud targeting companies is a serious matter. But remaining vigilant can help prevent your company from being victimized.
What steps is your company implementing to vanquish financial fraudsters?