Accounting industry is delicate and fragile one when it comes to data and information safety. Data breaching, hacking, and spamming are quite normal with the expansion of technology. No doubt, these unethical activities are big risk for any accounting firm or team. But there is one more thing which is a threat for any business regardless of the size and that’s fraud. No matter how dedicated your finance team is, the chances of being frauded by an employee or a third party will always be there. So, fraudulent activity is the major headache which company faces.

biggest risks

Here in this article, I’m going to walk you through the biggest fraud risks any finance team or accounting firm can face. And some DIY techniques to get rid of these frauds.

Let’s dive in.

Beware of these biggest fraud risks you can face

Below enlisted are the biggest fraud risks any accounting firm or finance team might face:

#Expense fraud

The first fraud you may come across within your company is expense fraud. What does expense fraud deal in? Basically, expense fraud consists of employees submitting fake or fabricated expense claim for reimbursement. Employee expenses include travelling expense, working weekends, and other miscellaneous expenses. What happens is the employees claim expenses to be high and show fake expense receipt. Let me also tell you that expense fraud also include misuse of company’s credit card. So, beware of such fraud.

#Business identity theft and phishing

Another fraud you may face being in the accounting firm is business identity theft, which is basically a phishing. Identity theft involves where a fraudster impersonate someone within the company with the intention to extract company’s confidential data. In fact, fraud can easily access to a plenty of other sensitive data as well. This can lead to serious damage to company’s records. So, make sure of everyone working in your company and keep your data and information protected.

#Social engineering fraud

In 21st century, hacking and spamming have become quite normal due to advanced technology and accounting tools. Today, it has become quite easy for fraudsters to commit fraud through social engineering. What they do is use phone numbers, so when they make a call, their true number is covered with the legitimate one. To tackle this fraud, you can use call tracking tool or system to help.

#Mobile banking fraud

We all know that today a lot of work is done online through mobile devices. Whether you do shopping or online banking, mobile has helped people a lot in every way. But there are disadvantages of it as well. Today, fraudsters use mobile technology to access your bank account, data, and information. So, if you’re using any app linked with your bank account, make sure to use it safely. Otherwise, you can avail virtual accounting services in Houston if you want to save your finances from any kind of fraud.

How to prevent your business from fraud?  

Follow the given tips to prevent your business from fraud:

  • – First of all, update all your accounting tools and software you’re using. Using out-dated tools for long will be a threat for your business.
  • – Make sure to automate the manual process to save time and keep your data protected from fraud.
  • – Do perform regular audits and risk assessment of your company’s work. Well, you can also outsource bookkeeping services in San Jose to protect your business data and keep it secure from any fraud.
  • – Being a company, it’s your responsibility to have clear policy of your business so that you can save yourself from any fraud. The policy clearly outlines what your company deals in and what it has to offer to your clients/employees.

Conclusion

I believe you have read the full article and frauds or risks you can face within your company. If any of the fraud you’re encountering in your company, make sure to deal them with the prevention tips I have discussed above. Also, you can hire a renowned accounting firm like Kayabooks for any kind of accounting service you need. We are good at providing payroll services, bookkeeping and accounting services at pocket-friendly prices. Our professional experts are known for delivering best services in the market.

For more queries, get in touch with us.