What are Different Kinds of Business Frauds?

Business Frauds

Doing a business may be easy when you plan everything in advance, calculate all the risks and are ready for it. But when your business is running good and when you are making a good profit out of it, there are chances that you may get into business frauds and suffer a huge loss. There are various business insurance that can help you out in the majority cases of frauds and one can select it by comparing them at iSelect. Thus, below described are some kinds to big business losses that one must keep in mind to be careful about them:

There are several cases where one’s bank account gets hacked and a good amount of money is stolen from their account. Thus, you must not share your business account details with anyone to keep the money secure. Also, to avoid hacking your account, the passwords for the online transactions must be strong and must be kept private.

  • Payroll Fraud:

Sometimes, there are such employees or workers that gain your sympathy and ask you for some advance money by providing you some genuine reason. Later, these employees never come back to work and hence the money you gave them is never going to come back again! Therefore, a businessman must think twice before lending their employees advance money. Rather they should keep some money as a security deposit to avoid these kinds of frauds.

  • Money Frauds:

If your business runs on cash as a major mode of payment, then you should be sure that all the cash you receive or give are not fake. There are many fake notes revolving in the market. Also, if you unknowingly give some fake cash to your customer or anyone, they might register a case for that since this is a serious offense. Hence, you should keep the machine which helps you in ensuring that the cash you are receiving is real and you do not have to face money fraud.

  • Return Frauds:

You might come across the customers that take goods from your store, use it without causing any damage or change in its physical appearance, and then return it to you even when nothing is wrong in it. This can slow down your sales rate and ultimately cause some loss. This is most common in online shopping. Thus, you must put some restrictions on the return policy of the goods such that you as well as your customers are happy and makes both of you in profit!

  • Workers’ Compensation Fraud:

There are many companies which provide their workers and employees their salary even when they are sick or get injured during the work. But not all of them might be true. They may make fake reports or injuries to get a paid leave. This will affect your business since an employee is not there to perform his task. Therefore, you must be smart enough to identity the fake injuries.