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Wednesday, May 8, 2013

Fraud - is still here!


I just heard a story about a company getting bills from its suppliers for goods they did not order. The suppliers shipped products to “remote” locations as specified on the email orders that seemed normal. They weren’t.

During startup and tough times organizations often pay little attention to fraud until they are hit. 

So what should you do? Here are a few things to consider:

1. Perform background checks on prospective employees, and do not give them a reason to steal from your business.

2. Check bank accounts, cash, invoices and financials yourself, at least monthly.           Banks make mistakes too. I recovered hundred of dollars from a bank that made a mistake in its calculations.

3. Ask suppliers to run audits.

4. Protect computer systems with firewalls, anti-virus software. Watch for   “phishing” schemes, and use “secure” online banking.

5. Protect hard-copy records, and dispose of carefully with shredding.

6. Don’t forget insurance coverage.

7. Stay current about the new technologies in use by potential thieves.


What are you doing to fight Fraud?


Steve Koenig, SCORE Counselor

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