Last Updated: 04.08.2020

5 Simple Tips for fraud prevention

Here are a few quick and simple tips for Maryland small business owners (or business owners anywhere).  These tips can quickly and cost-effectively cut down on the possibility of fraud and theft in your small business, avoid a costly loss, and avoid a call to your Maryland lawyer.

  • Be sure that deposits, check writing, and books are done by different people.
  • Double check the work of your bookkeeper.  You may not catch a problem immediately, but a tiny bit of oversight makes someone think twice before stealing and removes an opportunity.
  • Be aware of the “Four D’s” for employees (Divorce, drug use, debts, or disgruntlement in the workplace).  These life-issues allow employees to rationalize their behavior.
  • Watch for red flags in your accounting (unusual write offs of receivables, excess purchases, duplicate payments, strange payees, employee not taking vacations).
  • Maintain an open door policy with your employees to air problems, grievances, or to confide in suspected issues in the workplace.  An ounce of prevention is worth a pound of cure.

Remember, if you are a Maryland small business owner and you suspect fraud or theft in the workplace, be sure to preserve your evidence and contact your Maryland Lawyer immediately!

Maryland Lawyer: Small Business Tips Series