Business owners are hard workers who handle massive amounts of day-to-day work. They also bear the responsibility for making smart relationship decisions such as hiring and firing employees and deciding where to bank. Each of these business relationship decisions can strengthen the business or can expose it to potential fraud.
What exactly is fraud? Fraud is any act of deception that is used to create a financial gain.
This basic concept of fraud manifests itself in a variety of relationships and sources in the business world. Business owners need to keep a watchful eye on all aspects of their business in order to watch for red flags of fraud.
What are the most common sources of business fraud?
Wells Fargo made headlines last year because over 5,000 employees were discovered to have opened fraudulent accounts by moving money from existing customer accounts into brand new accounts without the customer’s consent.
Motivation? Bank employees who opened new accounts would receive bonuses. And this did not just happen once or twice. Over 1.5 million fraudulent accounts were created. Wells Fargo has fired these employees and is now paying fines and making restitution. Wells Fargo is a large company, but businesses of all sizes need to keep an eye on their employees for signs of fraud.
Business owners who like to diversify their financial funds need to watch out for investment or securities fraud. If an investment opportunity seems too good to be true, it probably is. Any investment opportunity should be thoroughly investigated.
Along the same lines as investment fraud, bank fraud is a common source of business fraud. If you receive information about a banking or financial institution, check it out before you trust them with your investment.
Business fraud, or corporate fraud, begins with ruses that appear like a legitimate business, but are only designed for financial gain for those running the scheme. Business fraud includes overpayment schemes, not paying for items or services received, and not delivering purchased goods or services.
Quick Group, LLC, is here to support business owners in their efforts to protect their resources and their good name.
We can help you with due diligence in investigating other businesses, banking, or investment opportunities. If you have reason to suspect fraud from another business or an employee, our private investigative services can investigate the situation. If fraud is discovered, our forensic accounting team can prepare the evidence for court.
You can also find out how to protect your business from fraud through our security consulting services. Contact us today.