Building up a business takes time, dedication and a lot of hard work. Therefore, the last thing that any company wants is to find out that they have been scammed out of their hard-earned cash due to business fraud. There are hundreds of ways that con artists will try to steal money and as a business, you have to be prepared.
Below are some of the methods that companies can use to protect themselves from business fraud.
Knowledge
There is no better way to prevent theft than to learn all of the various techniques that scammers are using. Read the papers, check the internet, learn what has been done to other companies and how you can protect yourself.
Inventory
You have to know what you have on hand. Keep detailed lists of what is on the premises at all times. Also, be certain that when you receive an order, you check the delivery against the order form. A common swindle is to short orders. Also, make certain that you are not being billed for goods that you have never received. Another common practice is for “fake” companies to deliver bills to a business and claim that they are owed money.
Accounting
If you do accept checks, you have to match them to the customer’s order. A common practice that criminals use is to send a bogus check to a company and then request a refund. The check that you receive may take a few days for a bank to process, which is more than enough time for a scammer to get away with your money.
Bank Account Number
If part of your business involves accepting wire transfers or direct banking, you have to protect yourself. Set up a separate account for this purpose. Have direct deposits and wire transfers sent directly to this account and only this account. Additionally, make certain that you empty the account regularly. By doing this, you prevent scammers from emptying your business accounts.
Bills
Examine every bill very carefully before you pay them. And for added protection, make certain that you are the only person who is able to authorize purchases.
Online Payments
If you are making company purchases online, protect yourself by using a third party. Never give out business information online. If you have to use a credit card, think about using a prepaid one. This is especially beneficial if you have never done business with the vendor. Another way to protect yourself is to make certain that you only do business with well-known reputable dealers. Do not get fooled into buying sale products from fly-by night companies.
Investigate
You have to know everyone you are dealing with. Do your homework and check out each company. Visit sites like the Better Business Bureau and Consumer Reports. This policy is one, which you should also employ in your personal life.
Education
Spread the word to all of the people in your employ. Make them aware of the various business fraud that may be used on them. Educating your staff will virtually eliminate the chance of them being conned.