5 ways to protect yourself against financial fraud in business



As you know, scammers can use completely different ways to get your money, today we will discuss how they do it and how to avoid it in your business.

Types of Fraud

I would like to note that there are a lot of them, and the only true advice that fits everything is to be careful.

1. entertainment expenses

Everything happens as follows: the company, after planning negotiations with new clients, pays a fraudulent manager who allegedly pays for the event. For example, a restaurant for a meeting between agreed. But it happens that for some reason the client pays for this service, and the warehouse fraudster takes the money for himself.

How to avoid this? Do not use cash payment, use cards – it is more reliable, and there is a chance to get your money back with the help of the bank with which the transactions took place.


2. Fake bonuses.

Here is the following sequence: the authorities support fake reports, according to which the norms and agreements at the enterprise are not observed, after which he receives his benefit in the form of the products of this company or money. For example, a reporting document may indicate that 500 units of a cook were manufactured, more money was spent, but in fact 400 units of goods were conditionally produced. The money, which was supposed to be almost another 100, this man took for himself and, possibly, for the people with whom he is in a conspiracy.

What to do in such a situation?

Keep accurate records on a regular basis. To come to him, it is worth hiring a third-party specialist. It must be a person not from your company. Otherwise, he can be bribed.


3. Past the checkout

It happens that employees deceive their superiors, taking their earnings. They do this by saying that there were technical problems in production. For example: they report that there was no light in the barbershop, so there were no customers. In fact, as it becomes known later, there was light, only the employee took the proceeds for himself.

How to avoid such situations? Monitoring. Try to observe the work of your subordinate in the possible ways. Install indoor surveillance cameras. Come with unscheduled inspections and demand activity reports.


4. “Non-working territories”

This version of fraud is similar to the previous one, but is more suitable for business with land areas. What is happening: some of the land plots are simply not included in the register of cultivated land, but work is underway on them and all the output is taken away by scammers – a management that secretly extends the harvest and takes profits for itself.

How to avoid this? Constant control of budget distribution, reporting. Be sure to conduct an inventory and reconciliation of the land used in your business. This requires professionals.


5. Leasing. 

The landlord puts a false price on the premises. It happens to Chaucer that he demands to pay half the amount in cash, and the other half, the real one, which is indicated in the contract, to the account.

Advice in this case: monitor prices on the market, stay tuned for real estate prices. You can even try to become a “mystery shopper” to see how the answers about prices will differ under different conditions and for different people.

We also want to add about Internet fraud. If you do business on the Internet or just post information on social networking pages, be careful. You may receive fake emails with context about output attachments, as well as bad links. Such links take you to a site that can download a virus to your computer, leaking data about your page to the Internet, and so on. Try to filter such emails. Those that come to the “spam” department are better not to open at all. Delete immediately. If your business is related to investing in cryptocurrencies, we advise you to take advantage of the advice and current news on ICOholder. Protect yourself and your money by avoiding scams on the Internet.

If you do become a victim of fraud in the financial markets, you should seek help from the police or the relevant bank, where they will help you solve the problem. Attach all kinds of evidence: your documents, screenshots of correspondence and letters, and so on.

By the way, it would be nice to have a financial airbag for such a case. at such a moment, it will help not only you, but also the restoration of your business.



Only your attentiveness and how you understand your chosen case will help you resolve difficult situations. Try to have more control over your business and the process in it. So there will be less lost nerves and money for nothing.

Written by Lewis Anderton

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