5 Fraud Prevention Practices for Small Businesses
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We love small businesses, and we want to help keep them safe from fraud! Here are five tips for small business owners for staying proactive and aggressive when combating loss and deception.
- Be Proactive. If you haven’t already, adopt a code of ethics for management and employees. While it may not seem important to publicly state your opposition to lying, cheating, and stealing – it truly helps get everyone on the same page. Plus, it demonstrates that you’re aware that fraud could occur. (More on that in Item #5.)
- Check your progress. The ways in which you already keep your books balanced are the most important fraud-prevention tools you have. Evaluate those internal controls for effectiveness and identify areas of the business that are vulnerable to fraud. What else could you be doing? How often should you be checking?
- Train Employees in Fraud Prevention. Do workers know the warning signs of fraud? Is ongoing anti-fraud training provided to all employees of your organization to keep it at the top-of-mind? Ensure that staff members know basic fraud prevention techniques.
- Implement a Fraud Hotline. Fun fact! Fraud is most likely to be detected by a tip. Providing an anonymous reporting system for your employees, contractors and clients will help uncover more fraud. It helps to demonstrate exactly how it works, so employees know it is truly anonymous – most people understandably don’t want to “tell” on others!
- Increase the Perception of Detection. In other words, make clear that you’re looking for fraud and have tools for uncovering it. If and when fraud is found out, report out to your staff about it. Make sure that the potential consequences are also communicated to all.
Kennebunk Savings invests in security technology, tools and services to protect your business accounts and your personal information.
Questions? Contact our Customer Care team at 1-800-339-6573