Top Tips for Preventing Scams in Business – Many businesses or almost all companies – whether operating on a small or large scale, end up being scammed, which causes the business to go into debt or face heavy losses. Such fraud or fraud may be perpetrated by a customer, supplier or employee. Fraud by customers includes fake bills, fake claims, and receiving fake money.

Businesses running the internet most often face fraud from customers. Such fraud is when a customer claims a sale that is properly and truly unauthorized by saying things like “the order never arrived”, “item was damaged”, and got a refund but never returned the product. suppliers _can commit fraud by claiming that the goods they sell are of high quality, thereby charging appropriate prices when the product is of poor quality. They overcharge their customers (your business) .

Suppliers may also charge excessive freight on the cost of goods or overstate the quantity of inventory ordered to create higher invoices. Types of fraud committed by employees include; inventory theft, money fraud, cash theft, expense account theft, and commission fraud.

A business can practice several activities to prevent fraud from occurring from the start of the company to make it a business culture. This culture will also force fraudsters to think twice before committing fraud, and creating awareness throughout your business will also make them unsafe to catch, which can lead to fewer fraud attempts.

Some tips that companies can do to prevent fraud in their business, especially in the accounting system, are:

  • Create proper rules and code of ethics.

Having proper and written policies means it is illegal for any employee to engage in suspicious activity. Managers and business owners must establish an anti-fraud policy and include ways to deal with crime or fraud. Make it clear that you will punish any employee who commits fraud.

  • Keep your employees under your watch.

Give your employees complete freedom to take responsibility for their tasks and do their jobs. This will give them the opportunity to do only the tasks they want to do, and they will not be as productive as you would hope, and they can also be dishonest when stating their hours or productivity. Companies must ensure that employees do the work assigned to them, and the reason why you hire them is to be satisfied.

  • Identify your business weak points.

Determine which areas your business cheats on the most. Quickly identify what makes fraudsters target your business and then find solutions to protect it or keep it under heavy surveillance. Identify suspicious activity occurring in your business and focus on that area more than anything else.

  • Conduct audits.

Have your business audited or have a CPA in the company then ask them to do a surprise audit. Audit procedures also include detecting fraud, performing tests of journal entries, checking accounting estimates, and checking for unusual or suspicious activities or transactions. An auditor skilled enough to detect fraud relatively quickly compared to one with less accounting experience.

  • Be aware of your financial system.

When entrepreneurs do not have sufficient experience in accounting, they leave the entire accounting system to an accountant. They do not concentrate on any of these activities. An accountant can easily take advantage of this opportunity and commit fraud. An entrepreneur must know what goes into and out of the business and review all income and expenses to ensure that all transactions are correct and in accordance with business operations.

  • be more careful when there are tempting offers.
  • report to the authorities if there is a case of fraud.
  • give strict punishment to the perpetrators of fraud.
  • don’t trust strangers right away.

How to prevent and report online fraud

  1. Not easy to believe
  2. Check at Finance Otority
  3. Report it to the authorities
  4. Make a report on the
  5. Report through the bank’s call center
  6. Report through the bank’s contact center application


Businesses need to detect and prevent fraud from happening to avoid unnecessary debt and expenses. Companies must watch for signs of fraud and ensure they reach the primary source of the fraud to treat it appropriately.

Hello, my name is Adrelina Mare usually called Adrelina. I am a professional writer on several sites, one of which is this blog.

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