Rampant types of fraud in small businesses

If you are a business owner, it’s important to know how fraud works in order to avoid huge losses. Fraud can be perpetrated by your very own business partners, employees, or even customers. Recognizing rampant types of fraud is needed to keep you one step ahead in business. Here are the top fraud cases seen in small businesses.

Identity theft Identity theft is not limited to an individual. It can also involve businesses as well. A criminal with access to your financial statements, bank statements, or your tax identification numbers can pretend to be someone from your office and access your credit information. Another way fraudsters can commit identity theft is by using the bank account number and routing number if an employee loses their paycheck.

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Payroll fraud Payroll fraud occurs in many ways but they are basically abuses that manipulate or cheat the current payroll system. For instance, an employee can ask for a payroll advance without paying the company back. Another very common examples are for employees to ask their co-workers to punch in their time sheets for them, and ghost employees. For ghost employees, a fake identity is put in the payroll. The earnings of the fake identity is then collected by the criminal.

Money fraud In fast moving businesses like stores or restaurants, it’s difficult to discern counterfeit money from real money. The most commonly duplicated bill is the $100. Know that if you accept any form of counterfeit money, the revenue from the sale will be void.

Joe Tacopina is a defense lawyer who is the founder and Managing Partner at Tacopina & Seigel, which offers a full range of legal services. At 49, Mr. Tacopina has more than 100 cases to verdict under his belt, earning the recognition as one of the top criminal defense lawyers in New York. For more reads about the law, visit this website.