Fraud is a major loss for many businesses. In fact, the Association of Certified Fraud Examiners (ACFE) estimates that fraud accounts for 5 percent of revenue loss for businesses each year. Regardless of how much revenue your business generates, you don’t want to lose any money due to fraud. Not to mention, you may be able to reduce the cost of your business insurance by incorporating anti-fraud strategies.
Educate Your Staff
Fraud can be committed by any employee. From doctors in a hospital to accountants in an office, people with access to financial documents are often tempted to misuse customer information and credit card numbers. One of the best ways to stop this behavior is educating your staff. By educating them, you are reinforcing your anti-fraud expectations as an important value for the company’s culture. Additionally, you are arming employees with information on how to recognize another employee that may be committing fraud.
Employ Fraud-Reducing Tools
Technology allows managers to govern who has access to what on networked systems. By reducing access, you reduce the chances of sensitive information getting into the hands of the wrong person. Additionally, your business can invest in fraud-reducing tools to further decrease liability exposure. Anti-fraud tools can include:
· Password protection
· Location tracking
· Performance audits
· Employee fraud hotline
Each layer of protection you have to prevent fraud reduces the likelihood that you will encounter fraudulent activity within your business.
Conduct Background Checks
All too often, hiring employees means getting a warm body in a seat for many companies. But with a human resource department that aligns with the strategic direction of the business, they may be able to eliminate individuals who have the potential to commit fraud. By checking candidate’s backgrounds and references, effective human resource professionals can help you reduce the instance of fraud in your business.
Protect Important Documents
Fraud can be committed using electronic data and by using important business documents. As a business owner, it is your responsibility to anticipate every angle someone with criminal intent may consider. By doing this, you can easily adopt security features that will help your business safeguard important business documents.
Purchase Business Insurance
When an employee commits fraud, your business may be held liable. With business insurance, you may not be completely responsible for the loss. Speaking with your independent insurance agent will help you identify the best insurance policy for your business to protect it from lawsuits stemming from fraudulent activity.
We’ve got you covered. Call Low Rate Insurance of Texas at (817) 635-0375 for more information on Grand Prairie business insurance.