So many frauds - such damaging impact!
What steps should be taken to reduce the chance of a fraud?
Small businesses can take several steps to prevent fraud and protect their finances:
Implement internal controls: Establish internal controls such as segregation of duties, regular audits, and checks and balances to minimize the risk of fraud.
Use technology: Utilize technology to automate financial processes and detect unusual transactions that may indicate fraud.
Train employees: Regularly train employees on fraud recognition and prevention, and encourage them to report any suspected fraud.
Conduct background checks: Conduct background checks on new employees, especially those who will have access to financial information or have the ability to authorize transactions.
Establish a fraud response plan: Have a clear plan in place to respond to incidents of fraud, including who to contact and what steps to take.
Stay informed: Stay informed about the latest scams and frauds targeting small businesses, and educate yourself on how to recognize and prevent these threats.
Limit access to sensitive information: Limit access to sensitive financial information to only those who need it to perform their job duties.
Verify requests: Verify requests for sensitive information, especially when they come from unfamiliar sources.
Review financial statements: Regularly review financial statements and reports to detect any unusual transactions or discrepancies.
By implementing these preventions, small businesses can reduce the risk of fraud and better protect their finances.
How we can assist with fraud detection.
By working with an independent party who can challenge your internal controls or assist in setting them up greatly increases your chances of minimising fraud.
Get in touch today to learn how we can be of maximum assistance.