Strategies for Preventing Fraud in Your Business

Strategies for Preventing Fraud in Your Business

Fraud is a very serious issue in businesses, and a third of all businesses have experienced it in the last year. Business fraud happens when someone misrepresents themselves or their actions to gain and cause the business a loss. Because of how serious this issue is, businesses must put strategies in place to prevent and stop it. Here are a few that can help.

Know Your Employees

Although customers are the main culprits in business fraud cases, employees can be too. Managers should know their employees so they notice changes that might indicate fraud is about to happen or is currently happening.

Internal issues, work environment, job satisfaction, anger with management, and other employee issues are often the cause of this type of fraud. Keeping an eye on and listening to your employees can clue you in.

Also, try to understand whether they are external issues that could cause an employee to commit a crime. For example, if they have a higher financial burden at home, they might be tempted to commit fraud for their family’s sake.

Know Your Business

You should know your business inside and out so that if something is happening, you will know about it fast. Know how the business operates, all the products and services you sell, your target market, how payments are received and paid out, and other aspects of the business.

Also read: How to Avoid Affiliate Fraud in Your Affiliate Marketing

Implement Account Verification For Customer Accounts

With almost all businesses accepting digital payments, incidents of fraud have been increasing every year. One of the most common forms of fraud is a customer using stolen details to purchase something from the business. There are also instances where the customer does not have enough funds in their account and is hoping you will ship the product before the bank flags that transaction or before you realize it.

Account verification can help stop these and other types of fraud. First, you can use account verification services to validate account ownership. You can also use them to see current and available balances on an account to ensure the account has enough funds to complete the transaction.

Instant account verification makes this process seamless and quick, so it does not take the weeks it used to. You can learn more about account verification from Yodlee. Yodlee creates products and services for individuals and companies. They also provide additional fintech solutions for banks, wealth managers, merchants, and others. Their products and services are used in retail banking, wealth management, payment processing, and open banking.

Monitor Employee Vacations

This is not about trying to find out what an employee is doing on their vacation but rather, why a certain employee has not gone on vacation for a long time. You might be impressed and think that their employee is diligent and hardworking but in some cases, that is not what is going on.

The employee might be afraid that if they leave, you will detect their fraud because you will have time to look through everything they were doing.


Fraud costs businesses billions of dollars every year. To ensure your business is not a victim, you need to put measures in place to deter and detect fraud so you can catch these incidents should they, unfortunately, happen in your business.

Written by
Delbert David

Delbert David is the editor in chief of The Tech Trend. He accepts all the challenges in the content reading and editing. Delbert is deeply interested in the moral ramifications of new technologies and believes in leveraging content marketing.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

Modern Cybersecurity

Beyond Prevention: The Role of DDR in Modern Cybersecurity Strategies

In today’s connected world, businesses have to deal with massive volumes of...

Vendor Risk

Vendor Risk Scorecards: Developing a Comprehensive Assessment System

In today’s interconnected business landscape, organizations rely heavily on third-party vendors to...

Security Risk Registers

Continuous Improvement of Security Risk Registers: Strategies for Iterative Enhancements

In the dynamic landscape of cybersecurity, the importance of robust security risk...

hiring for cybersecurity

The Benefits of Cybersecurity Hiring for Businesses

In today’s world, every company, big or small, has valuable information online....