Fraud Detection: 5 Tips To Reduce Risk Of Fraud In Your Business

Fraud is defined as any dishonest or illegal activities used to gain a financial advantage, and it can be done by either individuals or companies. With more people working from home during the coronavirus pandemic, the opportunity for fraud has truly skyrocketed. Between the economic unrest coupled with the removal of a controlled environment, it's creating a lot of uncertainty for businesses around the world. If you're hoping to prevent fraud, you may need to be more proactive than you think. 

 

An Ongoing Task

 

Business owners and staff already have full-time responsibilities, which is just one reason why fraud detection is often pushed to the back burner. But this is measure has to be an ongoing initiative if you hope to reduce your odds of being targeted. Because technology can change on a dime, businesses have to be able to keep up too. While there's no need to panic, business owners can't underestimate the power of even one incidence. Just one breach or theft can be the root of demise for otherwise healthy companies. 

 

Reducing the Risk of Fraud

 

Microbilt understands just how important it is for businesses to have employees and clients they can trust. This is why we've built a number of APIs that give you information when you need it most.

 

  • Bankruptcy Search: This API will report anything from evictions to bankruptcy fraud to lawsuits. When you know about a person's criminal record and financial status, you can enter into a decision with both eyes open. 
  • Identity Verification: Confirms a person's identity and receive an automatic risk score. This can not only streamline your business and reduce the risk of fraud, it can also minimize any delays for the credible people you want to do business with. 
  • Banking Verification: Use this tool to look into a person's bank account and ensure they're in good standing. Fake money is a serious problem for businesses today, especially given the number of ways that transactions can take place. As companies race to make purchasing faster and more convenient, their tactics can inadvertently pave the way for fraud. 
  • Loan Application Fraud: This API verifies whether an applicant is on the OFAC Watchlist. It will even check the federal Death Masterfile to ensure that the individual is not deceased. 

 

In addition to the verification APIs, you should also be thoroughly vetting any new employees you take on. Not only is onboarding the wrong process an expensive undertaking, but it can open the company up to fraud in a variety of ways. Even low-level employees can end up having far more power than many business owners realize. 

 

There's nothing to say that a person's past has to dictate their future, but it helps to know the person's background before establishing the terms of a relationship. If you want to learn more fraud prevention tips before it's too late, there are plenty of resources available to you. For many business owners, awareness is the most important part of fraud detection.