What do you think of when you think of fraudulent practices that can hurt a business? The first thing that probably comes to mind is bogus workers’ compensation claims. While many claims are valid, more than you’d care to believe are manufactured injuries or complaints. It seems like everyone wants to get on the bandwagon, so this is one of the greatest concerns due to the potential for rising costs due to claims being paid and more frequent inspections from health and safety officials. In any event, there are other ways in which fraud can have a serious impact on your business and here are three of the most common fraudulent practices to be aware of and seek protection from.
1. Malicious Reputation Attacks
Is society becoming less and less ethical over time? This is something many sociologists and analysts often question. While rumors have always been perpetrated by the competition trying to corner a market, the Internet has given rise to a whole new breed of slanderers. By destroying your reputation, your competitors can sweep your client base, but this is something that can be mitigated or even prevented. If you have been the subject of malicious attacks, online brand protection from FWI can help restore your company’s good name and protect it going forward.
2. Identity Theft
Another major rise in cyber fraud is in the area of identity theft. Cyber criminals have found it much too easy to gain access to business and consumer identifying information which positions them to gain control of things such as bank accounts and client bases. You can’t, after all, fingerprint someone on the other end of cyberspace, so cyber thieves have had a field day stealing from businesses and consumers alike! Combined with brand protection services, identity protection software can save your company thousands and thousands of dollars each and every year.
3. Fraudulent Returns
It seems like consumers are not as ethical as they once were either! There is a growing number of people who order products, use them for the need at hand, and then return them requesting a refund. A company can no longer sell that product as ‘new’ and so they eat a loss. Even when insured, the number of claims against product loss will give rise to higher premiums and, so, a business suffers either way. It might be worth your time and effort to set stricter return policies to try to prevent as many fraudulent returns as possible.
There are any number of other ways in which fraud can have a profound negative impact on your business, but these are just the most common complaints. If there is any one takeaway from all this, it would be to spend more time and effort researching ways to prevent fraud and then a bit of money on anti-fraud protection services. Anything that impacts your bottom line can literally bankrupt your business. A few dollars spent today can result in tens of thousands in profit tomorrow. That’s the real bottom line.