Protecting Your Business From Fraud


Fraud is something that most business owners fear, and unfortunately, it is becoming more common. Although you cannot control the actions of others who are being dishonest, you can take steps to protect your business. It is essential that you stay on top of monitoring all reports, as this is often the first place that fraud will show up. With some diligence and careful attention to detail, you can make your business as fraud proof as possible.

Monitor Your Credit Card Statements

Chargeback fraud is a real problem for many merchants who accept credit cards. This happens when a customer reports a legitimate purchase as illegitimate to a credit card company. This causes the merchant to be fined, and it can have a great impact on revenue. To reduce chargebacks, make sure that you are monitoring your credit card statements regularly. You can also look into merchant fraud protection programs that will help reduce the incident of “friendly fraud” and help you fight for the money that is rightfully yours.

Report Suspicious Activity Early

If anything shows up in your business reports that does not seem right, address the issue right then. Do not put off investigating the issue until it turns into a bigger problem. Many instances of fraud would be much less detrimental if the merchant caught the happenings in the early stages. Do not wait until your business is truly suffering to report suspicious or fraudulent activity; early detection and prevention is key to keep your business operation strong.

Run Background Checks on Employees

Whenever you hire a new person, it would behoove you to run a background check on him or her. This is especially true if you work in a place that handles a lot of cash or other types of deposits. After a few months of working with someone, you are likely a better judge of their character. At the beginning, though, it can be easy to be wrong about someone. If a person refuses to agree to a background check, this should raise a red flag to you as an employer.

Running a business of any size is no small feat, and it takes a lot of hard work and dedication to keep any operation going. To protect the assets that your business has and protect against fraudulent acts, keep these practical tips in mind. You will be thankful for your diligence if your business is ever victim of fraud.