Not knowing what things to look out for can cost you a lot of money when it comes to protecting your business against fraud. Most businesses lose money from fraud because they have mistakenly believed some business myths and as a result, have failed to put up the necessary measures for fraud protection. In this article, we are sharing with you some common business fraud myths to help you protect your business.
Myth #1: Fraud Is Not a Real Threat
Did you know that 47% of Canadian organizations experienced fraud in the last two years as of the 2020 PwC Canada’s Global Economic Crime and Fraud survey? In fact, it is estimated that Canadian businesses lost more than $30 million to fraud in 2017.
With the above said, your business can lose more than just money in fraud. Fraud will result in wasted time and the compromising of confidential information that might be about your client or your business dealings. On top of this, fraud can hurt your reputation and your brand.
Myth #2: Fraud Does Not Strike the Same Place Twice
Fraud is not a one-time thing. The reality is that once you had been a victim of fraud, then you have a higher likelihood of getting targeted again because fraudsters typically keep a list of people who have fallen victim to them in the past. Know that scammers do not care if you had been frauded before or not. They just want easy money from easy targets.
Myth #3: Scammers Are Easy to Spot
If this were true, then scammers will be having a lot of difficulties trying to fool a lot of people. However, we know that this is not the case as evidenced by the more than $104 million lost to fraud as reported by consumers and businesses to the Canadian Anti-fraud Centre in 2020.
It is a fact that it is easy to fall for fraud and scammers are so difficult to spot because of the following:
- Scammers create a sense of urgency
- Scammers will always pretend to be someone that you can trust
- Scammers often use fear and intimidation to make you react the way they wanted to
- Scammers usually promise amazing deals that are difficult to ignore
- Scammers always find a way to slip into businesses and their processes whilst undetected
Know that one of the best ways to avoid getting scammed is by knowing how scammers operate. Arming yourself with knowledge is one of the best ways to combat fraud.
Myth #4: Small and Medium-Size Businesses Are Not Targets
Scammers will typically go for the easy victim, and this is usually businesses that do not have security systems in place. They usually go for businesses that are small to medium-sized because these businesses usually cannot afford very strict security systems as well as employee training to recognize, reject, and report fraud.
Myth #5: Reporting Fraud is A Waste of Time
Reporting fraud is extremely important not just for insurance claims but also for the authorities to know what kinds of fraud are happening more often so that they can think of ways to prevent the occurrence of such. Understandably, a lot of businesses do not report fraud thinking that it could jeopardize their reputation, it is more helpful to report than to say nothing.
Are you looking for ways to safeguard your business against fraud or trying to protect your business against fraudulent practices? We may be able to help. Contact us at Haywood Hunt and avail of our private investigation services.