Protect Your Business from Fraud This Holiday Season
If you have owned a business for some time, you’ve likely discovered that fraud tends to increase during the holidays. Research has found that fraud losses increase during the holiday season by nearly 20 percent. While businesses want to do their due diligence to prevent fraud year-round, it is extremely important to be on top of things during the time leading up to the holidays. With this in mind, here are some tips for reducing fraud.
Prevent Use of Counterfeit Bills
One of the most unwitting ways to become a victim of fraud is to allow someone to pay with counterfeit money. There is currently an estimated $70 million of counterfeit funds in circulation, meaning it is highly likely that some will be handed over to your business this holiday season.
As technology improves, it becomes more difficult to detect fakes. Fortunately, tools like this counterfeit detector use ultraviolet light that allows it to detect counterfeit currency, credit cards, and chemically altered checks. This is an important tool for any business to have in their arsenal for fraud protection.
Audit Fraud Prevention Practices
All businesses should have processes and procedures in place aimed at helping you prevent fraud. If you don’t have a fraud prevention plan, it is certainly time to invest in researching and creating one. However, it is critical to review these plans periodically.
Thus, the holiday season is a great time to review your plan to see if anything needs to be changed. Identify aspects that can be improved. Additionally, ensure that staff is adequately trained on your procedures for fraud prevention.
Implement Internal Controls
Another important way to prevent fraud is to ensure that you are operating with strong internal controls. This means putting in place practices to ensure that your organization cannot be taken advantage of from the inside.
Internal controls for fraud protection involve things such as segregation of duties as well as regularly reviewing expenses. While staff members are usually ethical, the holiday can bring about various financial pressures that may influence a dishonest employee to try to take advantage of your business.
Fraud protection is business protection. Many businesses fall victim to fraud each year, with losses accelerating during the holiday season. Engaging in these practices will help to ensure that your business does not fall victim to fraudulent practices. Careful planning and having the right tools are important methods for keeping your business safe this holiday season.