There are many reasons for hiring private detectives in Birmingham, but protecting your business from fraud might not be the most obvious solution. However, fraud is estimated to cost the economy over £137bn per year with businesses regularly falling victim to fraudulent behaviours and criminal activities.
So, why is fraud prevention so important for protecting the future of your business? Here’s all you need to know.
Fraud prevention stops an escalating problem
Studies show that two-thirds of UK businesses fall victim to some level of fraud. Experts additionally estimate that one-third of companies experience increased fraudulent activity, year-on-year.
Fraud can cover accounting fraud, bank fraud, credit card fraud, identity theft, insurance fraud, and investment fraud. So, even if your business has yet to suffer from confirmed fraudulent activity, allowing it to remain in a vulnerable position is simply not an option.
How does fraud prevention protect your business?
Fraud can potentially put your business, employees, and customers at risk. Whether it’s one large instance of fraud or lots of small cases over an extended period, fraud can spell disaster for your business. Some examples of how it can harm your company include;
- Direct financial losses caused by unauthorised people gaining access to accounts.
- Financial losses caused by payouts on fraudulent employee claims.
- Damaged reputation and reduced trust in the business from clients and employees alike.
- Increased insurance costs when you subsequently look to protect the business.
- Lost customers due to being caught up in fraudulent activities or fear of future fraud within the company.
- Lost time and money as you deal with the incidents.
Even large organisations can fall victim to attacks and fraud. If you do not put the right precautions in place, there is a very real possibility that you will join the statistic. Worse still, the financial and reputational damage will often last for many years,
While you cannot remove the risk entirely, putting preventative measures in place will significantly reduce the risks.
So, how can you prevent fraud?
A robust fraud prevention strategy should begin with strong data protection and cybersecurity measures that extend to teaching employees about scams. You can also implement data analytics A.I., machine learning, and other tech tools to identify anomalies or attacks.
In many cases, though, the biggest threats come from internal dangers like employee fraud. Several steps can be taken to prevent employee fraud, including but not limited to;
- Taking extra care to master recruitment.
- Invest in strong policies including non-disclosures.
- Punish internal theft – like Amazon does.
- Use surveillance tech.
- Create an outlet for employees to report colleagues.
- Run audits.
- Supervise your employees.
- Control cash and keep mail-opening separate.
Prevention is always the best form of protection. However, it is equally crucial to act fast should you suspect that an employee is stealing from the company or making dishonest claims.
If you suspect foul play, our private detectives in Birmingham offer dedicated fraud investigations as a part of our commercial services. To learn more, feel free to contact our experts today.
