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09 Nov 2020

In the business world, it is important to be aware of the different kinds of fraud that can strike your company. If you are just starting out, or are an entrepreneur, you may have been told that fraud is a rare thing, that happens to businesses or people who didn’t have the correct checks or systems in place.

Frankly, this is not true; fraudsters and scammers are becoming more intelligent and with the use of technology, they are able to access accounts with ease and swiftness never seen before. In the UK, small businesses lose a great deal of their annual income to fraud attacks (an estimated £154,000) and so, it is important to be aware of the different types of fraud that could target your company.

At ABV Solicitors, our fraud solicitor is informed on the many different types of fraud that exist and can advise you on how your company may be targeted. We can provide you with insight into the weaker areas of your business that could leave you open to an attack, and suggest ways to improve. We can also offer you guidance on the steps you need to take if your company has already been the victim of a fraudulent attack. Brilliant!

But what are some of the different types of business fraud that your company may be exposed to? Read on to find out!

Identity

In relation to business, identity fraud may involve fraudsters using your actual name or the name of your business to take out loans or other lines of credit.

Typically done through access to online transactions, accounts or invoices, identity theft is the most common type of business fraud. To avoid it, our fraud solicitor recommends shredding paper invoices and changing online passwords regularly.

Payroll

More common in smaller businesses, our fraud solicitor identifies payroll fraud as when employees ask for an advance on their wages and never pay them back.

Similarly, this could involve lying about the number of hours worked, or having other employees clocking in for them. To avoid this, set up a stringent payroll process and keep tabs on all employees working hours.

Money

Money fraud involves counterfeit notes finding their way into your business, which is worthless when it is deposited into your business account.

Luckily, there are many ways for both you and your employees to determine if money is fake; UV light under your till, pens to detect colour shifting inks and assessing for watermarks are all simple ways to protect against the fraudulent currency.

Returns

If you have concerns that customers may be returning goods for store credit or financial gain, always make sure that you implement a ‘receipt returns policy,’ to avoid falling victim to returns fraud.

Workers compensation

In relation to employees claiming they were injured at work and seeking compensation from you, install security cameras in your place of business and always insist on a doctors assessment of the injury. Be vigilant and insist on evidence before paying compensation.