Every owner must know how to prevent fraud, especially when they have a large business with plenty of assets. It’s, unfortunately, true that fraud is a constant threat to any small business owner. No matter how diligently you run your business and maintain your records. A scheming staff member could compromise the integrity of the business. Preventing Ohio crime and fraud is essential to protecting your business and its reputation.
Best Methods to Prevent Fraud in Your Business
If you’re unsure how to prevent fraud, though, don’t worry — there are a few surefire tips that can help you sniff out criminal activity and establish a strong defense against any potential fraud.
Get To Know Your Staff
According to statistics, 47% of companies experience fraud. Employees often perpetuate much of this fraud. Your employees are likely some of your most trusted associates, so this possibility can be difficult to entertain. Blindly trusting your staff will surely leave your business vulnerable to fraud. To prevent this, you should get to know each of your staff members. Do background checks before you hire anybody, call their references to assess their trustworthiness, and call prior employers to verify their work history.
Allow Employees to Report
Even if you follow all tips, you could still have a traitor working in your business. As they go about their daily tasks, they may seem to be trying to hide something. Conversely, they may overcompensate by acting open and engaged. It’s difficult to detect fraud by appearances alone, and most employees will be on their best behavior when they know their boss is watching. Thus, you should establish a platform that allows employees to report potential fraud anonymously.
Invest in Fraud Detection
Many software solutions and other resources can help you detect fraud in your business. Installing computer monitoring software, for example, may help you detect unusual activity indicative of fraudulent activities. You should also develop a plan for internal controls to safeguard your business’s sensitive data and valuable assets. If you suspect an employee may be trying to access these resources, you should investigate immediately to determine whether any criminal activity has occurred.
Hire Experts for Audits
Sometimes it’s helpful to have an outsider’s perspective when looking for potential fraud instances. It is especially true when you’re investigating your own employees. Hiring a fraud auditor can help you detect fraud, identify the culprit, and strengthen your defense in the future. A fraud auditor can also help you gather evidence for a commercial crime and fidelity insurance claim. Investing in the right business insurance — including fraud insurance — is the best way to ensure your business is safe from the threat of internal crime.
About Haughn & Associates
Founded by Michael Haughn in 1986, Haughn & Associates is a full-service, family-owned, independent insurance agency based out of Dublin, Ohio. H&A strives to provide the best possible price and unique insurance solutions across a myriad of industries, including construction, IT, Habitation & Commercial Property, Agriculture, and Engineering. Devoted to providing the best of business insurance, life and disability insurance, personal insurance, employee benefits, and bonds, H&A is proof that success lies in long-standing client relations and satisfaction. To learn more about how H&A can be of service to you, contact us at (877) 802-2278.
