As a business owner, you need to be aware of the different types of fraud that are out there. Fraud can cost your business a lot of money, so it's important to take steps to protect yourself from it. Our New Jersey business litigation attorneys discuss three types of fraud that are common in businesses and the ways to protect against them.
1. Theft of Assets
One common form of fraud in businesses is the theft of assets. This can include things such as equipment, supplies, materials, and inventory. To prevent this type of fraud from happening, you should always have a clear record-keeping system that tracks the movement of your company's assets, so employees know where things are at all times. You should also set up procedures for tracking incoming and outgoing orders to ensure that only authorized personnel are handling particular shipments arriving or departing your business. Finally, monitoring employee access to areas where important or expensive assets are stored is important so you can spot suspicious behavior quickly if it occurs.
2. Bogus Billing Schemes
Another common type of fraud in business is bogus billing schemes. This occurs when employees create fake invoices or bills that are sent to customers on behalf of your company, but the employee actually pockets the money instead of sending it to the business. To prevent this type of fraud, you should ensure that all employees with access to customer accounts and files are trustworthy. You should also make a habit of regularly reviewing your billing records, as this will allow you to identify any suspicious activity quickly if it happens.
3. Embezzlement
Finally, embezzlement is another common form of fraud in businesses. This involves an employee stealing funds directly from the business's account, whether through depositing their own money into the account or using company money for personal expenses. To prevent embezzlement from occurring, you should always have a procedure in place for employees to request withdrawals or transfers of money. Furthermore, installing an advanced security system that monitors all financial transactions made by authorized personnel can help prevent this type of fraud.
As a business owner, it's important to be aware of the different types of fraud out there so you can take steps to protect your company against them. Fortunately, if you implement the tips above, you are sure to minimize your risk of being affected by these fraudulent activities.
Get In Touch With M. Ross & Associates, LLC Today
To learn more about protecting your business from fraud, be sure to contact us today. Our team of experts is here to help protect your business, and it’s reputation.
Contact us today at (201) 897-4942 to schedule an appointment with our New Jersey real estate attorneys!