July 11, 2020

Volume X, Number 193

July 10, 2020

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July 09, 2020

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How Business Owners Can Watch For Fraud

Fraud can quickly take down a successful business, or at the very least create significant issues for you to deal with. As a business owner, it’s important that you know how to watch for fraudulent activities by your employees. Here are a few tips for approaching the subject in your business:

Be careful who you hire

Preventing fraud begins before you even hire your employees. As you work through the selection process, be sure to investigate your potential hires, especially those who deal with finances. You can use a background check, credit report and social media check to look for any red flags.

Protect your business with anti-fraud policies

You should always have company policies in place that state that fraud is not accepted and that includes specific procedures to help prevent and deal with fraud.

Consistent analysis

Use data analysis to double-check the transactions of your business. This can help catch any errors or possible instances of fraud.

Educate your employees

Though you may have the definition of fraud and your stance against it in your company policies, that doesn’t mean that your employees are aware. Especially for new hires, create fraud education and training for them to complete.

Make it easy for whistleblowers to come forward

Create a company culture that is honest and open. This can help draw employees who are willing to call out fraud when they see it. Create procedures that allow whistleblowers to feel safe coming forward and reporting misconduct.

Watch for red flags

As an employer, it’s important to keep an eye on your employees. You have a unique opportunity to spot red flags like employees that live beyond their means or have significant financial struggles.

Don’t let any suspicious activity slide. Be sure to quickly and thoroughly address anything that you notice that could be indicative of fraud.

© 2020 by Raymond Law Group LLC.National Law Review, Volume X, Number 139


About this Author

Massachusetts has the most comprehensive data protection rules regarding businesses in the country. Your business must comply with these rules and have a written information security program (WISP)_. Failure to do so can result in prosecution and civil liability.

At Raymond Law Group LLC, we offer compliance counseling for businesses to safeguard them from future data loss and privacy issues. We can assist you in developing your WISP or security and privacy plan. Our attorneys also represent businesses and individuals who have violated privacy laws. Regardless of your company's...