Whether your business has been around years or you’re new to the world, you need to be aware of potential fraud.
From consumers to employees gaining an advantage, fraud can come in a variety of shapes and sizes. When it does strike, it can prove quite damaging for the business owner.
With that being the situation, what are you doing as a business owner to watch out for signs of fraud?
If you are of the mindset that fraud can’t come to your little world, think again. In the event it does come, you may never recover from the damages.
Be on the hunt for red flags
Among a couple of the more common types of fraud your business needs to be wary of:
1. Consumer fraud
While ideal to think all the customers have your best interests at heart, you likely know that is not the case.
That said be on the lookout for any red flags when it comes to customer sales. This is especially the case if you are doing much or even all your sales online.
In some cases, customers make a sale or two with you, only to end up calling their bank to cancel the transaction. By doing this, they leave you with the financial fallout.
It is wise to check Verify fraud prevention services for merchants on another brand. By doing so, you can have a payment protection provider monitoring your transactions. They can focus on unusual customer transactions, meaning stopping chargebacks from hurting you.
2. Employee fraud
In most cases, you’ve made the right choices when it comes to hiring employees.
Sure, some may be more talented and even harder working than others. That said you more times than not don’t have to worry about someone you hire that will turn around and stab you in the back.
In cases where employee fraud is suspect or even rears its ugly head, make sure you take action. Letting even one employee get away with fraud against your company sets a bad trend. In the event someone does pull it off, it could inspire others in the company to try their luck.
Make it known when you hire folks that fraud against the company and customers for that matter is not an option.
By having a zero tolerance policy for employee fraud, you are less likely to deal with it.
Given there are no guarantees that you will avoid fraud at all costs, you have to be wary of it from your first day open.
Although you have plenty to focus on, never overlook the possibility of fraud in your life. It only takes a few fraud episodes to potentially send your business spiraling out of control. If that occurs, you may have trouble getting your financial legs back under you in the process.
Make fraud the exception and not the norm. This allows you more peaceful and productive days as an organized business owner.