How to Protect Your Company from Fraud and Scams

Stressful times often bring out the worst in people. People who are desperate to support their family may make bad decisions and turn to crime as a solution. And then there’s the usual cast of thieves and scammers who do things like that on a daily basis. It’s unfortunate, but many businesses will become the target of crime this year. As a business owner or employee it is in your best interest not to leave your company unprotected.

Difficulty: Moderately Challenging

Instructions

Things You'll Need:

• Protection from the Internet
• Protection from Intruders
• Protection for your Sensitive Documents
• Protection for your Property and Assets
• Legal Protection

1. Protect your company from the dangers of new technology. As technology provides the business world with new opportunities, it also opens the door for new threats. It’s not enough to rely on the security measures of yesterday to protect your computers and sensitive data. If you do not have a properly configured firewall isolating your computer network from the Internet, then you might as well hook up a networked computer in the parking lot for anyone to use. Employee training and good communication about threats is also important. Employees can open the door from within the company network and unleash all manner of evil upon you if they are not closely monitored and educated. Spend the time and money to hire an IT professional or train someone within your company to perform in that role.

2. Use physical security measures on your building. How secure is the building where you work? Are there monitored security cameras? Locked gates and doors? Keypad entry protection? These are not really options but rather necessities unless you work hundreds of miles from civilization. Companies should keep all doors locked to keep intruders out. Special measures should be used to keep sensitive information and company equipment from leaving the premises as well. All important company documents should be destroyed instead of just thrown away. Familiarize yourself with different types of fraud, like check washing, and identity theft.

3. Hire a good attorney. Another key protection is to have a good legal representation in place to assist with legal decisions. Don’t trust your skills with searching the Internet to know the right decision to make. Know exactly what the law entitles you before you go in any new direction and keep your company from being the target of frivolous lawsuits. Also, educate each employee as to the level of authority they have and do not let them make decisions for you, especially when they are dealing with an unknown caller. Monitor all bills, especially from utility companies, who under law can now allow third-party billing by other companies in most states.

4. Stay vigilant. As strict and tedious as this all sounds, it is in the best interest of your employees and the company as a whole. Good prevention keeps your company from having to apologize for stupid mistakes later.

Tips & Warnings

• Learn from the mistakes of others.

Resources

• How to Protect Yourself from Unauthorized Third-Party Charges on your Phone Bill
• How to Avoid Online Money Making Scams
• How to Protect Your Money

[betterbody]

on 3/22/2009 Very good points in How to Protect Your Company From Fraud and Scams. 5*s

[ibloomdrop]

on 2/26/2009 Some good thoughts in this article. Thanks!