Five ways to protect your business from fraud




Here we suggest five ways to protect your business from fraud. The risk posed to your company's financial and reputational health as a result of fraud, bribery, and corruption can be significant. Companies can be haemorrhaging money and not know where from or why. And often, eliminating this is more cost-effective than attempting to increase sales. 

Ensuring you don't have any leaks is a critical aspect of any business; SME or Global. Being proactive in finding them is more effective than launching a reactive investigation after the damage has been done. 

So here are five tips for preventing fraud in your business:

1. Prevention is better than cure

Spending a little time and money now could save you endless amounts of time and money in the future. Remember, the biggest threat to your business isn't always a financial one. The reputational damage caused by fraud, especially if it's shown that you did not attempt to minimise the risk, could finish the business.

2. Look for weaknesses

There are lots of red flags that may indicate that all is not well. You are particularly vulnerable when cash payments are involved. Try and reduce these to an absolute minimum wherever possible. Internal fraud is likely to be small in value, but over time they will represent a significant loss. Always ask for evidence of expenses and periodically check a random sample in detail to make sure all is well.

3. Strengthen your culture

An anti-fraud culture needs senior management buy-in and needs to be led from the top. It will take time to develop if it is to be successful. Add fraud as repeat agenda item at your monthly management meeting. This emphasis on fraud will focus your thinking about your organisation's constant threat. Consider training your staff to look out for fraud indicators.

Also, if you haven't got something in place already, you should consider introducing a:

  • A fraud policy
  • whistle-blowing policy
  • A fraud response plan

4. Keep monitoring

Tackling fraud is an ongoing challenge. Fraudsters operate in the same way as a virus. By continually mutating once a solution has been found to stop them. Fraud monitoring should not be reviewed once a year on a tick sheet; it needs constant review. A continuous process is needed for you to become more fraud resilient. 

5. Don't bury your head in the sand

Fraud exists in all organisations no matter how large or small. It isn't good enough to deny you have a fraud problem. The fact is that you just haven't found it yet. Don't wait for it to hit you hard. Think what preventative measures to introduce or get help, sooner rather than later.

We suggested five ways to protect your business from fraud. You face a significant risk posed to your company's financial and reputational health due to fraud, bribery, and corruption. There is every chance companies can be haemorrhaging money and not know where from or why. Often removing fraud improves your bottom line. 

About Octopus Intelligence

We are Octopus. We provide greater certainty with excellent global Commercial Competitive Intelligence services.

When you need to win more business. Make business and investment decisions based on greater certainty. When you need to know how to tackle the risks you face. And when you just need to beat your competitors. We answer the questions when you just need to know. 

We live in an uncertain, competitive and ever-shifting world. What you need is an active real-world strategy. Where deep expertise combines Commercial Investigations, Competitive Intelligence and strategic advisory. To answer the who, what and the how, for the now and the next. 

We offer a boutique feel with a big business capability and real global reach.

Trusted by brands, middle-market players, investors and start-up innovators. Providing powerful growth-focused Commercial Competitive Intelligence, Corporate Investigations and Competitive Strategy services.

Follow us on Twitter/octopusintell and Linkedin.

And, get in touch with Octopus via our contact us page.

Also, please feel free to sign up to our daily one-liner Intelligence tip. Or sign up for our monthly article. 

And here are some more articles from Octopus:

Free no obligation chat
Enter your details and we’ll be in touch to arrange a convenient time for you.