How to avoid becoming a victim of business financial fraud

[Jasz]

Business financial fraud is a growing concern for businesses, especially those operating in the retail industry. However, it is possible to avoid becoming a victim of business financial fraud by taking some simple precautions.

1. Know who you are dealing with: When you are making a financial transaction, make sure that the person you are dealing with has been approved by your company and has signed a written contract stating what he or she is entitled to receive from you and how much money you owe him or her.

2. Know your business: If you own a small business and need to borrow money from someone who manages other people's money, ask questions about their track record and experience managing money before agreeing to any deal.

3. Don't ignore red flags: If someone asks you to sign an agreement that seems too good to be true, it probably is! Be suspicious if someone tries to get an advance on future payments when they have never done so before; if someone promises high interest rates but can't provide proof; if a loan request comes from someone who works for another company; or if they ask for a large payment upfront without giving any details about how they will repay it back later on.

4. Check online: Businesses should, make thorough research about the company or business you are involved with.

 

[Holicent]

There are many ways to avoid being a victim of personal financial fraud, but the best way of all is to know how to avoid it in the first place. Here are some tips to help you do just that:

Don’t share any personal information online. This includes your name and address, bank account numbers and passwords, Social Security number or anything else that could be used to steal your identity.

Check your credit report regularly. You should receive one every year from each of the three major credit agencies: Equifax, Experian and TransUnion. Every time you apply for credit or insurance, check your report to see if there are any mistakes or discrepancies in your payment history. You should also monitor any changes made by creditors or insurance companies in response to your application or claim.

Check for unauthorized charges on your credit card statements. Credit card companies will send you periodic statements listing all purchases made with that card and any fees charged for each transaction — including late fees and over-the-limit payments — as well as information about how much interest has been charged on those balances since they were last paid off. If there are unauthorized charges on any statement, contact the company immediately.

 

[Mataracy]

To escape this fraudulent of a thing in the business or company. The owner or the management need to plan very well and make sure that all things are place in place.
The company should make sure that all the inflow transaction and outflow transaction and we'll documented and we'll stated for future reference.
The company should employ good and capable workers in order to make things more easier .
There must be an Accountant that will be in charge of recording, classifying and make sure that the account of the organisation is well prepare and documented.
There should also be an internal Auditor who will be in charge of making sure that the Account prepare by the company accountant is well stated without any errors that could leads to fraud. And he will be in charge of checks and balances of the organisation and correct any errors seeing in the account prepared so that it will not affect the company.

 

[eldavis]

One mistake most investors usually make is actually in a business they do not know much about simply cause they have seen others invest in it. Like you said, before making any form of investment, make sure you have gotten the needed information about the business, how it started, how they get their profits, who runs it and how long it has been running. Do not let the promises and rewards blind your sense of judgement.