Most of the time, fraudsters and scammers target small businesses compared to large corporations because they know very well that small businesses do not have the same security systems as big companies. It is pretty easy to compromise the security of small businesses.
To prevent fraud, these are a few tips and tricks that small business owners should implement.
Background checks of employees:
Before hiring a new employee in the company, a formal hiring procedure should be mandatory. It will help you to know which type of people you are allowing to enter your company. It is obligatory to see the employment history of every employee whom you trust in terms of cash handling. The personality of a worker is not enough to prove that he will not commit a crime. Most of the time, the employees a boss trust and admire are the ones that commit fraud or theft. Fraudsters pretend to be loyal in front of their managers and coworkers so that no one can suspect them. Often, employees you least expect fraud or theft from are found involved in financial scams, which is why it is vital to have a little background check done.
Hire trustworthy experts:
You might have many experts in various fields working for you, such as certified fraud examiners and certified public accountants, and you will need to trust them all. It is possible that not all of these experts are as well experienced or have as good of a reputation in the market as they claim. When you are hiring these people, make sure that they have a good reputation. Trustworthiness plays a significant role here. When you hire trustworthy and well-reputed people, you will feel confident that your internal control audits are safe and that no one will ever leak or misuse your company’s information.
Maintain internal controls and take the help of experts:
Certain control activities are your company’s policies. These policies and activities include top-level reviews, the process of changing duties, designing new procedures, and establishing them; this will help employees perform and fulfill responsibilities. Clear guidelines diversify transactions among staff members. If you have implemented all fraud prevention measures, but still there is no advantage, then it is crucial to hire an expert for your business. A professional will perform a more in-depth review of control processes and audit business books. Certified public accountants and certified fraud examiners can help a lot in terms of detecting fraud.
Take care of sensitive information:
Credit card fraud is so common that it is often in the headlines. It doesn’t matter if a business is small or big, home-based or office-based; it risks facing fraud. The easiest way to prevent credit card fraud is to separate business accounts; this will help track business expenses more easily. Before handing over credit card information to someone, ensure that the receiver is authentic by using secure bill payment services. Secure bill payment/processing services reduce the risk of check theft. You have to protect your company’s sensitive data because hackers are masters in getting into computer systems. There are various cyber security vendors. All you have to do is find out the product which you think is best for you. Make it challenging and complex to get passwords. Ask your employees to change passwords every two to three months and generate new, solid, and difficult-to-decipher passwords. Also, you should back up your files daily and store them. This step will ensure that you can instantly get back and restore the files whenever your system gets hacked.
Keep an eye on your partners:
When you think of starting a new business-based relationship with someone, make sure to develop a level of trust. First of all, you should know about their physical address because it will prevent you from facing fraud. Even if you do a web search to get some basic information about a company, this will provide you with all the data about whether they are running a business or not. The local government Commerce Department is the additional resource that will provide all the needed background information.