How to Prevent Fraud in Business
Your employees are the vital force of your business. You need the right people to keep your business operations going, and you trust your employee to help build your business. However, every so often, your employees put your business in jeopardy. Sometimes, small businesses are victims of employee fraud. Not only this a threat to the survival of your company, but it’s a betrayal of trust. No matter how much you trust your employees, it’s important to protect your business from all fronts. Check out these tips to prevent frauds in your business.
Types of Employee Fraud
This is a large category. Anything from stealing to corruption to financial statement fraud can negatively impact your business. Some acts are more detrimental than others, which is why it pays to protect your business.
Impacts to Your Business
While all fraud is bad for business, employee fraud is especially hurtful. In fact, small businesses tend to be more affected by fraud than larger companies because of their weaknesses and vulnerabilities. Unfortunately, most of the funds lost in such cases aren’t recovered.
Protecting Your Business
There are various measures that your small business can take to help protect itself from employee fraud. Prior to hiring new employees, conduct a background check to look for any red flags that could threaten your business. It also doesn’t hurt to check in with your employees. If they exhibit any suspicious behavior, it could be an indication that something is not right.
Don’t leave your business exposed to risk. Invest in the right business insurance so that you can rest easy knowing you’re protected. Located in Renton, WA, contact Humble & Davenport Insurance for all of your personal and commercial needs.