This section will give you some ideas, tools and strategies for detecting, deterring and prosecuting fraud from whatever source.
There will always be some crook that figures out how to get at what he wants no matter how cleverly you think you've protected it. So when you learn of an instance where prevention failed, don't hesitate to mete out deterrent consequences by having the fraudster(s) prosecuted to the full extant of the law.
- Dealing with Crooks: Employees & Otherwise -- For the majority of this module on fraud, we've concentrated on raising awareness about schemes that can impact small businesses specifically. As a result, we've emphasized occupational frauds which are invariably perpetrated by individuals, such as bribery or embezzlement, as well as common transactional frauds, such as insurance scams and money laundering. This is just a narrow slice of the fraud pie -- just the most relevant to small businesses. It's unlikely you'll be confronted with big time criminal organizations, but don't fall into the trap of thinking employee thefts and shoplifting as just a nuisance cost of doing business. These small frauds add up and are quite preventable if taken seriously.
- Prevention: Your Best Option -- As is often true, an ounce of prevention really is worth a pound of cure. Devising ways to deter fraud in all its forms will go a long way toward mitigating your risks.
- Consumer Protection Resources -- As you might expect, state governments and a number of federal agencies provide resources to help combat fraud.
- Software Solutions -- Numerous companies have joined the battle against fraud by developing software tools to help detect and deter fraud.