4 Steps To Help Prevent Fraud In Your Business

  • Contributors:
  • Eric Larson
Image of woman locking door as way to prevent fraud in business

How can you prevent employee fraud in your business? Here are four suggestions.

1. Screen job applicants

Check work references, criminal records, and professional recommendations.

By instituting a screening policy, you may save a lot of cash and grief. Remember to treat every applicant equally, and get written permission for background checks.


2. Reconcile bank accounts

A simple internal control is separating employees who pay bills and make deposits from those who reconcile accounts.

As an owner, making time to personally review deposits and disbursements on a regular basis can deter fraudulent billing or cash skimming schemes.


3. Secure inventory and supplies

This can be as simple as regularly changing combinations on warehouse doors or locking supply cabinets.

Laptop computers are especially vulnerable to theft, so make a priority of securing them.


4. Get a cash control review

Having a trained set of eyes inspect your books, records, and operations can pay for itself many times over.

Skilled auditors can expose scams and help your business develop stronger controls against criminals, both inside and out.


Have questions on how to prevent fraud? Lets talk!