How Can I Protect My Business From Financial Fraud?

Every year, thousands (maybe even millions) of business owners suffer losses due to various types of financial fraud. Smaller businesses in particular are at greater risk because owners don’t always have the time to closely review bank statements, expense reports, and credit card bills. By the time the fraud becomes obvious, it’s usually too late.

In this Blog, the financial fraud and asset recovery attorneys at Waserstein & Nunez share some tips that can help you better protect your business.

Secure Credit Cards and Bank Accounts

Be very careful about which employees receive a company credit card or have access to the business bank account. In many cases, this type of theft occurs from within the company, so you want to maintain strict control over how many people are in a position to impact finances.

You will also want to:

  • Check online banking regularly for suspicious activity.
  • Set up alerts for banking and credit card transactions.
  • Switch to online bill payments to reduce the likelihood of financial information being stolen. If that is not possible for some accounts, use a secure mailbox for receiving bills.

Keep Your IT Infrastructure Secure

Your company systems should be protected by a firewall and antivirus package that also watches out for spyware and malware. Hackers use these assets to steal financial data such as credit card numbers and online banking logins. They even look for personal information needed to open financial accounts in your name.

Provide Guidance to Staff

Most (if not all) of your employees are honest, and holding regular training sessions on security threats and prevention measures can turn them into your first line of defense against financial fraud. Recommended measures include:

  • Instituting policies on the proper use and handling of confidential company information, including financial data.
  • Creating a policy that requires each employee to change their password every 60 to 90 days. Direct them to use complex passwords that are at least eight characters long and contain one uppercase letter and one number.

Run Background Checks on Applicants

Making the right hiring decisions can minimize the risk of financial fraud due to employee dishonesty. Run pre-hire background checks, especially for employees who will be handling cash or have access to the company’s financial information.

Get Business Insurance

Despite their best efforts, businesses can still fall victim to financial fraud. If this happens to you, the right business insurance policy can protect you from any losses incurred by fraudulent behavior. You should also talk to your financial institution or credit card issuer about your options if your business account or company credit card is compromised.

Contact a Florida Business Fraud Attorney for Advice

At Waserstein & Nunez, we know how financial fraud can devastate a business, and can provide you with the advice you need to take preventative measures as well as possibly recover assets that have already been stolen. For more information or to schedule a consultation on how we can help you reduce your risk, contact Waserstein & Nunez today!

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Waserstein & Nunez, PLLC

Waserstein & Nunez, PLLC is a boutique law firm with extensive and varied experience of a large law firm. They are geared towards deal-making and solutions but always preparing and ready for trial or Plan B.

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