Fraudsters are opportunistic. They target businesses that appear disorganized, understaffed, or unaware. And while it’s impossible to eliminate risk entirely, many scams succeed simply because basic safeguards are missing.
Whether it’s an inside job, a fake injury, or a vendor billing scam, there are patterns. Scammers look for lax controls, poor oversight, and inconsistent procedures. But the good news is this: a few practical, low-cost changes can make your business far more difficult to defraud.
Three areas to strengthen right now:
- Invoice Review and Vendor Vetting
Fraudulent billing schemes are more common than many realize. They may involve fake vendors, overbilling, or collusion between employees and outside contractors. According to the Association of Certified Fraud Examiners’ 2022 Report to the Nations, billing fraud schemes such as these are the most common type of asset misappropriation and produce the highest median losses among small businesses.
Designate a point person for invoice review—someone who knows what’s been ordered and what should be charged. Also, periodically audit your vendor list. Are there companies billing you that no one remembers authorizing?
- Incident Response Protocols
If someone gets hurt on your premises or on the job, how do you document it? Vague or missing records make it harder to confirm coverage or defend against questionable claims.
Every incident should trigger a thorough response: written reports, supervisor statements, photos, witness accounts, and post-event analysis. The stronger the documentation, the stronger our ability to investigate and appropriately adjudicate the claim.
- Quarterly Operational Reviews
Don’t wait until something feels off. A quick quarterly review of payroll, vendor spend, stock, and timecards can surface patterns and prevent long-term losses. Look for anything unusual—repeat claims, spikes in specific expenses, or work that wasn’t fully performed.
Fraud prevention isn’t just about catching criminals—it’s about reducing friction, protecting profits, and building a resilient business. Start with a 15-minute audit this week. Pick one area—vendor vetting, incident response, or expense review—and look for gaps.
