Small business fraud often flies under the radar because most business owners are embarrassed to admit they’ve been scammed by someone they trusted. Often what happens is an individual with access to a company’s funds (often person in a position of trust) will skim a bit off the top of the deposits coming in and then modify the books to cover their tracks. Owners need to pay close attention to those handling the cash and should consider external firms to conduct random audits.
Small business owners using payment card machines are advised to pay particular attention to the condition of those machines. In particular, they should be physically checking the point-of-sale terminals to ensure the machines have not been tampered with by an unscrupulous employee who may be using the machine to copy or clone card user’s banking information.
More tips on preventing small business fraud
More info on Fraud Prevention Month