Uphando Forensics

Fraud In Your Company: Warning Signs And Prevention

Fraud can have a devastating impact on businesses, so it’s crucial for business owners to be proactive in preventing and detecting fraud. Here are some common red flags of fraud in a company and tips on prevention:

Missing Documents: Frequent occurrence of missing documents during reconciliation or financial reviews may indicate potential fraud. Implement document management systems and monitor document handling to mitigate the risk.

Unusual Cash Transactions: Investigate significant discrepancies between expected and actual cash receipts. Conduct regular audits, surprise cash counts and establish a secure cash handling protocols to prevent cash-related fraud.

Increasing Expenses: Watch for trends of increasing expenses that don’t align with your business or the current economy. Look out for fake vendors, padded expense reports, and fraudulent invoices. Verify payments to new vendors and regularly review expense reports for any suspicious activity.

Abnormal Invoice Volume/Numbering: Investigate sudden spikes in the volume of invoices from a particular vendor. Ensure vendor invoices are verified and confirm the legitimacy of any drastic changes in invoice volume.

Travel Reimbursements: Monitor travel expense reports closely to prevent fraudulent activities. Ask for valid receipts and review expenses meticulously.

By being vigilant of these red flags and taking preventative measures, you can minimize the risk of fraud within your company.

For assistance with fraud prevention and detection, contact Uphando Forensic & HR Services to safeguard your business against fraud and protect your financial well-being.