How to protect your small business from fraud

Every business, regardless of size, is open to the threat of fraud. But small businesses are especially vulnerable. Decision making and other key responsibilities are spread thin between a select few. In this blog, we’re going to look at how you (as a small business) can reduce the risk of fraud.

Vary and divide

If an employee has authority over a number of different parts of your business, it makes it so much easier for them to commit fraud. Roles loaded with responsibility should be divided. For example, the person taking money in store shouldn’t be the person cashing it in. Division in this way is easier said than done. Small businesses are often strapped for staff meaning many roles need to be doubled up.

You should set up regular audits to be carried out. If staff members are aware that audits are taking place, they’ll be less inclined to commit a fraud. There’s too much of a risk that the audit will uncover their activities.

Hiring

Bringing in more staff is often a sign that your business is growing, which is good. But it can also be a headache. You need to make sure that you’re hiring someone who can be trusted and get the job done.

It’s important that you make use of references provided. Pick up the phone and speak to them about the applicant. How do they know them? What do they know about their previous employment? Why did they leave?

If you’re hiring someone to take on a role with a lot of responsibility take more time to find out about them.

Educate staff members

Staff members could be viewed as your biggest vulnerability, up to 65% of fraudsters are employees, but they’re also your first line of defense. Ensure that they receive regular training on security threats and prevention measures. Set guidelines that clearly state business rules and goals, and make the consequences of breaking such rules known.

It may seem like a classroom approach, but businesses need to set boundaries in order to protect themselves.

At Focus Training & Solutions we provide investigation and fraud training courses that equip you with the knowledge to protect yourself. Browse our site today to find out more.

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