Types of frauds

Types of frauds

Types of frauds that might get your business in real trouble

Nearly half of small businesses have or will at least once experience any type of frauds, which ca drive them at the closure of it, accounting frauds are very serious and can get you in real trouble, especially if we consider that they are usually done by employees of the businesses. For this reason, we will present you some type of frauds so you can pay attention to them and avoid them.

“Frauds are potential end of a lifecycle of a company, so the success of your business will depend on taking the necessary cautions in order to avoid them”, commented Salomon Juan Marcos Villarreal, president of Grupo Denim.

Now we will show you different types of frauds that can potentially destroy your businesses:

  • Payroll – Surprisingly a payroll fraud is pretty common, it happens when the person in charge of paying salaries register massive extra hours that are of course not paid to anyone as they gather that money for themselves, one might think this would never happen to your company but it would amaze you to see how common it is to be a victim of this fraud.
  • Over-ordering – These frauds happen when a person employed to request supplies start over-ordering and returns whatever is not needing exchanging it for things he or she could use for themselves, this is a way of stealing to a company, and it usually happens to the employees that have been at a job for ages; therefore, their work is hardly checked.
  • Friendship – A common mistake is to hire friends, this is a sad but true situation, as you will be surprised to know how commonly people very well-known commits frauds to their employers. Your company should never be left in hands on anyone else, even a best friend, family or a person you feel sympathy for.

“Frauds have turned into the end of many companies, so you should pay attention to all aspects of it, a constant revision of your books and personnel can be the difference between a successful company and a one that has to close”, added Salomon Juan Marcos Villarreal.