Businesses need to take the necessary precautions to protect their assets from any form of fraud. It’s actually quite common for anyone to strike, at any time. Organizations around the globe actually lose an estimate of 5% of their revenue due to fraud.
According to the survey conducted by fraud experts from the Associate of Certified Fraud Examiners (ACFE), companies that believe they’re taking all of the necessary precautions to prevent fraudsters from wrecking havoc can also become victims.
To help businesses protect themselves, here are a few tips you should follow in order to protect yourself against fraud attacks.
Make sure you research and verify each of your employee’s backgrounds. The US Chamber of Commerce has estimated that employee theft can cost an organization over $40 billion per year. This value is 10x times greater than the value of street crimes in the US.
Your customers come second to your employees, especially to the importance of your business. However, any kind of organization is susceptible to customer fraud, whether they’re from return frauds, stolen credit cards and bad checks. Organizations that conduct customer credits checks will always avoid any form of lost revenue.
Organizations need to incorporate the use of physical internal and external security in the form of personnel, cameras and locks. One of the easiest ways to commit fraud is to obtain access to personal business files and leave with the material.
According to the Javelin 2013 Identity Fraud Industry Report, 2012 itself had seen over one million fraud incidents costing around $21 billion.
This is an essential ‘must do’ strategy; employees are simply required to change their passwords frequently in order to protect confidential information from leaking out. In accordance to the 2011, Cost of a Data Breach Study: United States, in 2012 alone, the cost per company on reported breaches amounted to $5.5 million
Most fraud incidents are identified by whistle blowers in the company. An organization needs to either set up a text number, website, email address or phone number, ensuring the provider with complete security, if they identify any form of fraud incidents. The Associate of Certified Fraud Examiners (ACFE) said that most frauds are identified through whistle blower and tipsters from within the organization.
Form a knowledge based team who will be ready to aggressively investigate, address and correct any issues, irregularities and concerns in the organization. In order to perform such a task, the individuals in the team need to have strong working knowledge of the company’s policies. The team needs to be capable enough to handle various incidents that may arise, through snail mail, social media phone, email or fax.
A dynamic and flexible case management system that is capable of assembling pieces from various sources is highly crucial. Technology offers access to various pieces, no matter where they’re hiding, and knowing when the incident occurred is important too. Today, smart phones and tablets are the perfect tools for the knowledge worker and the success of your business relies heavily on the support of these devices.