If you own a business, there is a great possibility that you are going to encounter an issue of fraud. When you do, it is going to be paramount that you understand how to mitigate any monetary damages, along with associated risks that your company’s reputation may suffer in the process.
Your best defense against fraud will be your ability to be knowledgeable on the subject. Being aware of what signs to look for can help your business avoid the pitfalls of scams. Listed below are compiled tips to help avoid business tort litigation involving fraud.
A great way to deter fraudsters from coming after you is to try and understand their methods of operation. Fraud usually occurs because a scammer is able to build a foundation of trust that will provide them an avenue to get the information they need to gain access to your company.
Another tactic they use is creating a fast-paced environment that forces you to make quick decisions without any research. Scammers will use fear and intimidation to get their way and con you out of money by having you send them payments that are untraceable. Often, these payments involve wire transfers, digital currency, reloadable cards, or gift cards, making them difficult to track.
Inform your employees that you have a plan to deal with potential fraudsters who may be trying to con your business. Encrypt passwords and never send sensitive information through emails that can be siphoned by scammers. Build a rapport with your employees, especially those that interact with finances. You are putting a lot of faith in employees who handle accounting duties, and you should run thorough background checks on them.
When paying bills, make sure that you can verify invoices, payments, and other expenses. Go over the way you handle payments with anyone on your staff who is authorized to sign off on your behalf, and stick to the system at all times. Delegate accounting duties to at least two people within your company to avoid having one person having total access to the books.
Nowadays, a lot of fraud occurs online, so it is in your best interest to be technologically proficient. Never open an email that may contain attachments of files that could contain malware that will attack your computer systems. Hackers can also damage your standing in the community by intercepting your social media accounts and relaying malicious information. In an effort to minimize risks, secure your company’s files, passwords, and financial information.
You can also protect your business by implementing a mandatory vacation schedule and instituting a medium, whether through email or phone, where a fellow employee can anonymously report any suspicious activity.
When you put effort into running an effective business, nothing can be more disheartening than someone threatening your livelihood. Fraud can seep into all aspects of your business and derail your operations. However, our Philadelphia business lawyers at Sidkoff, Pincus & Green P.C. can help you. Call us at 215-574-0600 or complete our online form for an initial consultation. We are located in Philadelphia, and we serve clients throughout Pennsylvania and New Jersey.