A critical step in fraud prevention is taking the time to check things out.
ACFE notes that high risk areas like financial or inventory departments are “obvious targets for routine audits” and recommends surprise checks of those and all parts of the business.
Another tactic is establishing a fraud hotline. According to ACFE, companies with fraud hotlines cut losses by approximately 50% per scheme.
Bank of America notes that speed counts, especially in electronic frauds. That means checking your online accounts often and notifying your bank — and even law enforcement — immediately. You may even want to hire one of ACFE’s Certified Fraud Examiners if the attack is particularly damaging.
The implementation of anti-fraud controls can save you lots of money. Not convinced? The findings of the ACFE study showed that there were significantly lower losses with precautions in place. For example, organizations (including large companies) that conducted surprise audits suffered a median loss of $70,000, while those that did not had a median loss of $207,000.
So, get a Fraud Risk Checkup, put some basic precautions in place, and give things a regular sniff test.
Who knows — it might just save your small business.