Most common types of frauds that businesses face

Your business is a great representation of success. If an organisation or a company can sustain itself and even turn a profit, it is a fantastic achievement for the founder and our society as a whole. However, some people look at it with envy and jealousy. These same people will try to scam you and relieve your business bank accounts of their resources. To prevent that, you have to be ready and know all there is about the most frequent type of frauds that businesses face.

Invoicing

Invoicing is an everyday activity, carried out by fraudsters. They send invoices for undisclosed ‘services’ for an amount which most mid-sized and larger businesses consider insignificant. The amount is paid, and a company loses anywhere between five hundred to a few thousand dollars.

This is not a total catastrophe, but the scammers can lure out money from thousands of companies at the same time. Unsuspecting accountants who are sometimes, even, outsourced, proceed with payments and the fraudsters gross millions of dollars yearly.

To prevent this, make sure that invoices are signed off by a manager or a head of the department, and clarify further if doubts remain.

Telephone fraud

On the rise, telephone fraud can come in a variety of forms. The type which has gained much notoriety, recently, is robocall fraud. Since tons of companies have switched to robocalls for the primary method of client information, they are not suspicious in by themselves.

However, fraudsters have been using spam and robocalls to trick and scam unsuspecting people. Businesses are facing the same risk, as well. The most threatening situations are social engineering and a scammer befriending someone in your organisation and gaining their trust. They use this trust to suddenly make a pushy demand over the phone, and your employee complies.

Protection from this can be ensured from within. Train your employees to always ensure transparent communication by implementing multiple-step authentication/identification.

Free online reverse phone number lookup can give away fraudsters immediately.

Monitor calls and get in touch with your carrier to know about what you can do, to prevent telephone fraud in the future. Insider information trading

This is common in the world of public companies, where stocks are a major economic driving force. Brokers and fund managers pay hefty sums to people inside organisations to get private information on upcoming deals or get news before they get out to the public.

Be it as it may, not only public companies can suffer from insider info trades. In the spheres of high competition, you need to be wary of excessive price-matching, commercial secret leaks as well as other dishonourable methods of insider info trading.

You have to make sure that people who work with sensitive information can be trusted. When a product launch or a significant event is being readied, your business has to be extra careful.

Data breaches

If you are not an IT and Cybersecurity specialist, this is out of your realm. Your organisation should have and maintain a dependable IT & Cybersecurity department which can solve issues and help protect your business and sensitive data from wrongdoers.

Things like expired security protocols, unchanged passwords and non-encrypted communication can potentially bring devastating damage to your business. Leave it to the IT people to take care of it, and prevent massive losses by doing so.