How to Protect a Business Against Fraud

Around the world, new businesses are popping up everyday. Along with an increase in businesses comes an increase in scam artists who target businesses. These scam artists use many means to defraud businesses out of hard-earned money. Common frauds aimed at businesses include fake promotions, counterfeit check cashing, untrue claims pertaining to non-profit organizations and many more, not so obvious scams.

Instructions

Difficulty: Moderate

Things You’ll Need:

• Attorney, if necessary
• Common sense
• Computer for research

1. Ask many questions when contacted by someone with a deal that seems too good to be true. Most scam artists are looking for a quick buck and will move on if confronted with too many questions. Always ask for references and qualifications, when applicable.
2. Insist on contact information including a phone number and a physical address. Double check to make sure that the phone number and address are legitimate.
3. Insist that all monetary transactions are made in person, if possible. Also, request that you receive a receipt following any transaction. Completing a transaction over the phone or via the Internet is a bad idea if you believe there is a chance that you are being scammed.
4. Read all paperwork thoroughly. Make copies of the paperwork so that you always have the information on file.
5. Contact local authorities if you believe that your business has been defrauded. Additionally, contact your bank if you believe that your account information is in jeopardy. If you have further questions, speak with a lawyer who specializes in fraud.

Tips & Warnings

• Keep close tabs on your business bank records to make sure that you can account for all money coming and going. Some frauds on businesses take small amounts of money at a time rather than one large sum.
• Never give out your banking details or any passwords unless you are completely sure you are dealing with a legitimate entity.