This month is International Fraud Awareness week from 17 – 23 November. Here at Summerland we are taking the opportunity to highlight the risks of fraud for small businesses.
In 2018, Businesses in Australia reported more than 5,800 scams with losses totaling more than $7.2 million. Studies have shown that smaller organisations, with 100 employees or less, suffer higher median losses than larger organisations.
Scam Watch recommends that small business owners who employ staff should make fraud prevention a business priority. Whilst business owners like to think they hire trustworthy employees, people’s personal lives and financial commitments can change to a point where pressure can tempt even the hardest working and most loyal employees into dishonest situations.
Here are eight tips to help minimise the risk of fraud in your business:
- Spend some time on your hiring process – conduct background checks on people handling cash and stock. Check that references, employment history and education information are genuine
- Have internal controls in place – conduct regular checks and balances and have shared responsibilities
- Make sure expenses are approved and receipts are collected
- Monitor point of sale and stock storage areas
- Conduct surprise spot checks on stock balances and cash registers at random times
- Create a simple fraud policy which sets out safe options for staff to report suspicious activity and the consequences of committing Fraud offences
- Be alert to changes in staff behavior or circumstances
- Educate your employees and advise them that you have processes in place for detection
You can find more resources about protecting your business online from Stay Smart Online.