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4 Ways to Protect Yourself From Business Fraud

Every company is susceptible to fraud. This is largely because there are so many different kinds of fraud.

Cybercriminals adapt their ways almost as quickly as cyber security firms make new products and services. It is almost impossible to protect against every type of attack.

1. Secure Your Accounts

Have you not made a different credit card or bank account for your personal life and business? You need to do this as soon as possible. If a hacker gets hold of a single account, he or she will gain entrance to other account. You need to evaluate your security systems when it comes to banking online and make sure that you are able to automatically log out. You need to create a monitored reimbursement expense policy for your team members and hold on to it. Make sure that your credit card provider is fraud protected since you are giving your credit card numbers to your employees.

2. Safeguard your computers

Computer hackers are trying to get in to your computer. You will need a firewall to secure the information that your business has. Software that blocks viruses can assist you in helping detect breach of information as well. Look for cyber security vendors that fit all of your needs. Your team members also need to create passwords that are difficult to hack into. Your employees will need to switch up their login information every sixty to ninety days.

Click here to learn pregnancy protection laws in California!

3. Do an employee background check

While you are increasing your employee count, you will need to find people who you can trust. You shouldn’t rely on references on their resume. You need to do a deep background check on everyone you let in. Some businesses could bring this service to you. It costs only thirty to fifty dollar for one report. You can filter out your candidates and run a background check right before you decide who to bring on your team. You will also need to ask permission before doing the background check.

4. Make a protected entrance

A protected entrance system could prevent people who you don’t want to give access to. Some key-card systems bring out clock-in and clock-out records of a worker’s entrance and exit from your office.

Management can also limit access to specific areas to certain people. For example, you could use a key card system to only let the tech managers inside the server room. Limiting the access to sensitive areas will keep you and your business safer.

Do you have a question about business fraud in California? Click here to contact Von Esch Law today!

Courtesy of Cuselleration

Learn 7 Steps to Avoid Business Fraud

All businesses should take the time to mitigate any risks of fraud. Smaller and mid-sized operations are vulnerable to business fraud, and the after effects can be devastating for everyone involved.

Business fraud usually falls into three different categories: theft, financial statement fraud, and asset misuse. The vast majority of business fraud schemes are related to outright theft, such as stealing cash or claiming fraudulent expenses, and asset misuse, like granting kickbacks.

Business fraud can be tough to tackle, especially for smaller businesses who might be tight-knit and incorporate many family members. Considering your employees as friends or family can make it hard to confront cases of business fraud and theft. Plus, smaller businesses usually have less financial oversight, less knowledge on fraud schemes, and remain vulnerable to even small instances of fraud (since they can completely derail operations).

If you are looking to avoid business fraud, keep these seven steps in mind as you operate your enterprise.

Separate Accounting: Smaller businesses usually have one person who works on everything pertaining to finance. This system makes it easy for people to skim the company and misdirect money to other places. All businesses should have at least two people working on the finance side, or develop a relationship with an accounting firm on the outside.

Learn About Employees: Most business fraud is carried out by an employee on the inside. Take the time to really understand an employee’s background and knowledge before hire. Background checks should be a necessity, along with occasional time off, since this could expose a scheme in place.

Run A Tight Ship: All businesses need to be very careful about who has financial knowledge. This means restricting access to account information, building a verification system for reimbursements, and carrying out audits on accounting books.

Watch Your Bank Accounts: Online banking makes it easy to check out accounts and statements at any time. Be sure to compare the online data with your paper copies to make sure everything is on the same page. Watch out for checks that are not in order and strange payment recipients, who could be the benefactors of a scam.

Properly Train Employees: One of the best ways to avoid business fraud is to train workers on how to spot it. Encourage them to report strange behavior through an anonymous system and craft a business code of ethics to keep everyone accountable.

Click here to learn why you have a lawyer review your contracts!

Protect All Credit Card Numbers: Credit card fraud is becoming a popular way for people to steal money from businesses. A good way to ward this off is to separate all business and personal accounts. This keeps funds safe on both sides if the other accounts are breached by credit card fraud. All businesses should be very careful about who they give out credit card numbers too and use online payment services to mitigate any risks.

Audit Regularly: Businesses should subject themselves to regular audits on all financial activity to stay accountable. Non-scheduled audits, especially if they are from an outside source, can help detect fraud that might have gone unnoticed otherwise. Many companies are experienced at carrying out audits for businesses of all sizes and will give valuable advice about warding off business fraud in the future.

Keep the above seven steps in mind to fight against business fraud. It can strike a business of any size, but good due diligence will keep your operations safe and protected.

Do you have a question about business fraud? Click here to contact Von Esch Law today!

Courtesy of Cuselleration

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What You Need to Know About Fraud in California

Fraud is something that can get anyone tangled up. Most fraud cases do not come at the hands of random people or strangers, but occur through someone who was trusted and then got swindled. This is a big issue because people who are victims can quickly become embarrassed and unwilling to share what happened to the proper authorities.

Across many jurisdictions, fraud is both a criminal and civil matter, even though fraud has a narrow legal definition. In California, there are activities that seem like they constitute as fraud, but are not seen as such in a court of law.

There are a few different categories of fraud. These include a deliberate misrepresentation of a fact that was knowingly false, especially if an individual believed that fact to be true.

Another is the deliberate hiding of a fact by a fiduciary, or the negligent misrepresentation of one, that a victim relied on and was harmed as a result.

These definitions can be a bit vague, but the important fact about fraud is that it takes place when another party betrays the trust of someone. Fraud can also take place amid complex transactions, making it even harder for people to pick up on.

One of the best ways to catch fraud is to simply keep detailed records, especially with your financial transactions. Holding onto receipts, bank statements, and any other financial records makes it a lot easier for an experienced professional to get a grip on fraudulent activity and take the proper steps to remedy an issue.

Click here to learn why you should have a lawyer review your contracts!

Always make sure to have a clear grasp of any terminology in a contract before signing, especially if it has to do with a large sum of money. Many people get tricked through deceptive or confusing language. Do not hesitate to enlist the advice of our experienced attorneys to look over an agreement or deal before you sign.

Another way to cut down on risks of fraud is to simply make sure you deal with the right people. Check out reviews and recommendations before engaging with a business, and make sure they have proper licensing as it pertains to California law.

The legal system in California gives people a few options if they have been defrauded, as most of the recovery from such a case will come in the form of damages.

The most common measure is the “out of pocket” rule in California. This makes sure people get compensated in a fraud case for the money they actually lost.

Another one is called the “benefit of the bargain” rule, which gives people the difference in what they thought they would get minus what was actually received. It is important to note that debt is not able to be discharged during bankruptcy for instances of fraud. People who have committed fraud are mandated to pay back their debts, even if they go into bankruptcy.

If you feel like a victim of fraud, be sure to talk to our legal experts for your case. Our attorneys will be able to review and give you advice in the pleading stage of your case.

Do you have a question about fraud in California? Click here to contact Von Esch Law today!

Courtesy of Cuselleration

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How To Spot a Ponzi Scheme

A Ponzi scheme occurs when a scammer uses funds from new investors to pay the returns to existing investors. There is no real money being generated and when the scammer is unable to get more new investors, the scheme eventually falls apart. Being able to recognize this type of investment fraud is imperative if you want to avoid losing thousands of your hard earned money to a scam. The United States Securities and Exchange Commission (SEC) has laid out warning signs to alert potential investors to a Ponzi scheme.

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