Small businesses often pay a big price when it comes to fraud. Smaller companies tend to be more susceptible to fraud and theft. Companies with less than 100 employees often suffer higher loss levels than larger companies that can afford more security services, too. It doesn’t have to be that way, however. Here are three steps you can take to protect your company from fraud today.
Build Systems and Fail-Safes
Never rely on a single person when it comes to your company’s finances. Instead, build a multi-person verification system. You should require at least two separate people to approve and record any expenditure of company funds. For example, an employee seeking to travel should be required to obtain approval from a primary supervisor, and then one other individual (perhaps from the accounting department). Relying on two people from different departments to approve expenditures will make fraud more difficult.
One of the best ways to avoid fraud and theft is to simply pay attention. Monitor and audit all of your company’s spending activities. Look for irregularities that could signal illicit activities or fraud. Consider enlisting outside experts to help you, too. For example, when it comes to your company’s insurance expenses, VerifiaBill can determine whether errors in health insurance bills are more frequent than they should be. Our auditing and resolution services can help eliminate the possibility of fraud when it comes to your insurance.
Invest in Real IT Security
Cybercrime is one of the fastest-growing and most damaging types of fraud small businesses face today. Failing to protect against it can cost your company money. It can also lead to the loss of valuable assets, like intellectual property. Consider hiring someone full-time to manage your IT security. If that isn’t feasible, leverage outside help to get the expertise you need. And establish clear business rules for use of your company’s network, so employees don’t inadvertently let the bad guys in.
Although small business fraud is a real threat, it is also a manageable one. Is your company doing everything it can to avoid fraud or theft? If not, consider these tips, and start protecting your business more effectively today.