Fraud, embezzlement, and misuse of funds are some terms that the politically correct like to use. To others its stealing and theft.  One of the most important aspects of running a business or corporation is ethics.  From the CEO’s, CFO’s and other leadership positions to the lowest ranking employees and customers you serve people have been stealing for ages.

I believe that an honest corporation will draw the interest of honest employees.  With a more open and honest culture, management can create a more honest workplace.  Now I understand that sometimes no matter how hard a company tries some people will still take what’s not theirs.  With the integrity and trust of many corporations in question it’s no wonder so many people steal from companies.

Leading from the front is the first step in preventing a large loss for businesses.  With some corporations making an effort of supporting the claim of, “the customer is always right” many companies have to remain vigilant when exchanging checks, money, or merchandise.  Scammers have evolved into creative ways of getting away with stealing from businesses.  Although I enjoy not having a hassle when correcting an issue businesses must be aware of these scams and check for these fraudulent acts.

By separating a businesses account from an account used only for wire transfers a business can minimize the risk and hassle of being robbed via wire transfers.  The extra step of creating more accounts can be a pain in the neck, but minimizing the risk could potentially save the corporation not only peace of mind, but anywhere upwards of millions of dollars.  When starting or growing a business startup funds are essential.

A very common practice by scammers these days is phishing.  You could only imagine how many people are desperate for startup funds and are more than willing to exchange their information.  Once a phisher has their information they can gain access to that business’s accounts and open up other fraudulent accounts and company credit cards in that business’s name.  At the end of the day companies should be more cautious when giving out information regardless to how bad they want the funds.

If you’re looking to start a small business it appears it’s not a simple task, and there’s more involved than just simply coming up with a catchy name, selling some product or service, and getting money from the bank.  These scammers are pitfalls and must be paid close attention to.  Do you think that with all the scams going on in today’s world that small lenders trying to enter a market thrived on by scammers can be successful?  Should small businesses stick to the big name lenders to be on the “safe side?”  What percentage of businesses costs should be appropriated towards theft and fraud prevention?

 

http://business.time.com/2013/05/17/arresting-small-business-fraud/

Simonds, Lauren. “Arresting Small Business Fraud.” Business Money Arresting Small Business Fraud Comments. Time.com, 17 May 2013. Web. 17 May 2013.