Frauds have been around as long as legitimate jobs. There will always be people willing to cheat and sneak around to make money. But the more the police and law enforcement agencies fight fraudsters, the more inventive they become.
Not only ordinary workers but also larger fish in the form of Payday Depot companies and other large corporations like Apple or Nike can already fall into the sphere of fraudsters. However, not only are fraudulent schemes evolving but so are ways to combat them. Learn how to protect your business from fraud and not get caught in the tempting bait of deception in this article.
Check Out the Most Popular Fraud Schemes Today
Although scam schemes change and modify, most of them are essentially the same. There are also popular trends among scammers, which are often warned about in the news or social media feeds.
Illegal use or theft
Often, we may not even be aware that theft is taking place right in front of us. It may be the illegal use of company equipment by employees for their personal use. It is also worth keeping a close eye on those who have access to the company’s finances. This type of scam is unlikely to bring great losses at one time, but over time it can snowball and be an invisible, but significant enterprise problem.
Corruption and bribery
Abusing one’s position can also be considered a scam. Not only can it threaten to disrupt the order within the company but also the existence of the company as a whole. Some people may take advantage of their position to collaborate with another company for their benefit despite the disadvantages of the alliance. If this is allowed to happen too often, the company will lose its influence and begin to slowly fade away.
Breach of confidentiality
Fraudsters can be inside your company and take advantage of the commercial information of the production for their purposes. More often than not, the fraudster is pursuing personal gain in the form of additional earnings or to improve his or her position. For example, having access to the client base and supplier base, offering clients more profitable deals on the side, and earning interest. Or the most trivial of all: sharing confidential information with a company’s competitors.
Recording the numbers
If your company looks very successful and its stock price is constantly rising, it might be a reason to double-check your data. There is a known case where a manager concealed a company’s losses with an elaborate scheme: before the period closed, all the loss-making industries were sold to shell companies and then dug back in afterwards. This created an illusory success that turned out to be a failure for the company. In this case, the manager pursued personal gain because they received additional profits for good revenue figures, even if all the figures turned out to be far from reality.
Knowing about the most common cases of fraud will help you quickly identify their presence in your own business as well as take steps to eliminate them.
