Business fraud occurs everywhere. It happens in small businesses, large businesses, rural areas, metropolitan cities, startup businesses, established entities, for-profit businesses, or non-profit organizations. The perpetrator might be a Baby Boomer, Gen-X, or Millennial. It doesn't matter. Dishonest and/or desperate employees have no preferences or age restrictions.
1. Understand Fraud Losses
2. Be Aware
To avoid being the victim of business fraud, there are several areas that a business should concentrate on:
- Understanding risks
- Being observant of employees
- Implementing necessary controls
3. Understand Your Risks
4. Be Observant of Employees
5. Implement Necessary Controls
Implementing necessary controls and then ensuring compliance with those procedures is an important element in stopping fraud in the first place. It is far better to stop fraud before it starts than to catch a perpetrator after a fraudulent act has occurred and try to obtain restitution for the amount lost. A business can be strengthened with proper controls and check and balance systems to make sure procedures are followed.
Everything Ties Together
It is not just one thing that prevents fraud from occurring in a business. It is many different elements that all tie together. It is important for any business of any size in any industry to be vigilant regarding potential fraud within the business, especially during times of financial hardship. At Sperto Consulting, we can help you identify and implement the sales, finance, inventory, and operational tools you may need to identify and address potential business fraud.