5 ways you can protect your business from fraud

Fraud is affecting businesses all over the country, and it is proving more important than ever to be proactive when it comes to protecting the security of your business. With this in mind, Utility Bidder has shared expert advice and 5 tips on how you can help protect your business from fraud.

Suppliers are a crucial aspect of most businesses as they are responsible for the sourcing of company products and this plays an important role in the success of any business. By conducting background checks on any potential new suppliers, you can learn about any past criminal convictions and/ or factors which may make them unsuitable for your company.

This may come as no surprise, but protecting your company bank account from fraudsters is extremely important. By ensuring that your business assets are safe and secure, you can protect yourself from cybercrime fraud. In addition to this, you should also be wary of any monetary-based email scams, especially concerning businesses.

Fraudulent behaviour can come in many different forms, from external perpetrators to internal corruption. Although it is impossible to be sure that an applicant is 100% trustworthy, there are some things you can do to minimise the risk of hiring someone deceitful. Some examples of this include making sure to do a full background check on any future employee and double-check any references given.

From local businesses to worldwide chains, the safety of a company can be hard to control. By educating existing employees about the dangers of fraud and providing them with warning signs to look out for, you can help increase the protection of your business across the board.

Anyone who owns a business is familiar with how important audits are when it comes to monitoring finances. As well as showing you how much your business is earning, they can also help to decipher how said money was earned. By regularly conducting audits, you can keep on top of any irregularities and deal with any inconsistencies in a prompt manner.

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James Longley, Managing Director at Utility Bidder, has commented on the latest business fraud trends across the UK, and how business owners across the UK should prepare themselves to combat all fraud risks in 2023.

“According to Utility Bidder’s recent research in exploring the state of business fraud in the UK, over 260,000 business fraud cases were filed across England between May 2022 and May 2023 – this amounts to an average of 452 per 100,000 people.

“Over 60% of businesses admitted to experiencing fraud as of 2022, and it can be a damaging experience for all involved, and no one should have to endure some problems – so how can we best protect our businesses?

“First and foremost, being aware of all partners and outside entities is vital. Even if the firm is known to you, it is always safe to perform your own background checks and this can include checking past convictions of potential suppliers and sourcing any factors which would lead to an unsuitable working partnership.

“You should also have the same level of proficiency when it comes to protecting your business from the inside, especially when it comes to employment. Fraudulent behaviour can come from internal perpetrators, and even though you are never going to know the ins and outs of everyone’s lives, fulfilling a background check and double-checking any references given will go a long way.

“Perhaps most important of all is having your own finances in order and being able to track any inconsistencies. Ensuring that your business assets are safe and secure will help protect your business from cybercrime fraud – a risk which is certainly heightened in the modern age compared to more commonly traditional methods. Also, completing regular audits will help you distinguish any irregularities.”

You can review Utility Bidder’s review of the UK’s Business Fraud Hotspots by clicking here.