12 Tips to Prevent Business Fraud

Are you taking steps to protect your business information like you do for your social security, credit card and bank account numbers? If not, here are 12 tips to assist in preventing business fraud.


1. Password-protect laptops and encrypt sensitive files. Keep passwords
protected - don't allow employees to write them down and leave them on
their desks.

2. Install, use and regularly update anti-virus and anti-spyware software on
your computers / network. Use a firewall to prevent hackers from invading
your computer/network.

3. Educate employees not to respond to or click links within suspicious
e-mails as they can potentially infect their computers with keyloggers or
other malicious software.

4. Protect statements that contain account numbers.

5. Conduct thorough background checks on applicants during the hiring
process.

6. Segregation of duties: no employee should be responsible for both
recording and processing a transaction.

7. Run random audits or have a third party audit your books once a year,
in particular for bookkeepers or employees who have access to financial
records and documents.

8. Make sure all checks, purchase orders and invoices are numbered
consecutively, and regularly check for missing documents.

9. Personally follow up on customer complaints that they have not received
credit for payments.

10. Check safety:
a. Use a "for deposit only" stamp on all incoming checks to prevent an
employee from cashing them.
b. Require all checks above a nominal amount to have two signatures.
c. Never sign a blank check.
d. Sign every payroll check personally.
e. Avoid using a signature stamp.

11. Take the time to review accounts payable by checking cash disbursements
and payments. A very common scheme to look out for is billing-scheme
fraud where an employee sets up fictitious "phantom" vendors.

12. Institute a "clean desk policy" to keep sensitive and/or customer information
out of view.


Stopping all fraudulent activity may be difficult but having safeguards in place is only prudent.

Call Access Companies at 866-722-4715 for free FACTA compliance training.