We see it in both the local and global news all the time. Community leaders, influencers of great wisdom and experience, falling victim to fraud or employee theft.
Fraud is a factor of any business. Whether you are running a large global company or a small local non-profit, you will find that you face some degree of fraud risk. It is essential that you are fully aware of the two types of fraud that plague businesses, to ensure that your day to day operations run smoothly and with no one taking more than agreed upon.
INTERNAL
Like mentioned before, internal fraud, also known as occupational fraud, occurs more often than one might choose to believe. This type of fraud occurs when someone internal to the company, be it a manager or an executive, commits fraud against the company by using company funds or resources for personal gain. This could be a matter of misusing a company credit card, billing personal endeavors, or claiming that the cost of a recent project was higher than the actual number and pocketing the difference. While many companies have numerous policies and criteria put in place to help prevent internal fraud, new risks develop regularly. Many find it effective to regularly consult with experts in the field to address these new risks and help ensure the safety of the company from within.
EXTERNAL
External fraud is a crime that every company should remain aware of. It can occur in any industry, whether you deal with the public or other vendors. The age of modern technology has completely transformed the threat of eternal fraud, welcoming third parties into the internal databases of companies. This has led a revolution of security breaches that not only put your company at risk, but that also impact the security of those who entrusted you with personal information such as clients, customers, or business partners.
External fraud is not something to take lightly. Unlike internal fraud, in a case of external fraud, once the money is lost it is difficult, if not impossible, to track down. The security measures put in place to prevent every form of external fraud from other vendors, the public, or third-party hackers, should not only be reviewed by experts, but regularly updated as well. Hackers and outside parties are experts at breaching any lack of security, and therefore, it is important to have trained eyes monitoring regularly for any potential threats.
You deserve peace of mind when it comes to the security of your own business. For many organizations, the only true way to prevent fraud is by consulting with experts to help manage your company and monitor for any holes in the system. Let our team of fraud detection and deterrence experts work to both detect any current fraud, and deter any future complications. If you are looking for a way to help ensure your company’s security from fraud, contact us today.