Five Financial Fraud Risks You Need To Know About If You Own A Business

Five Financial Fraud

Unfortunately, even the most successful businesses have their fair share of financial frauds. For example, these can be in the form of emails or phishing scams. If you own a business and are concerned about falling prey to one of these scams, you should look at fraud prevention solutions from NICE Actimize. Here’s what you need to know about fraud risks.

Employee Fraud

Employee fraud is one of the most common financial crimes. This type of fraud can be difficult to detect because it involves various people and locations. Employee fraud can also be hard to catch because it often happens behind closed doors and without much oversight from management.

If you own a business where you actively employ people, you need to know about employee fraud risks, so that you can protect yourself against them. Run a background on each employee and provide only the necessary access to every employee.

Check Fraud

If you own a business, you need to be aware of check fraud. This is a very common fraud that impacts millions of people every year. Check fraud is when someone tries to get money by presenting what appears to be a genuine check. The check will have been altered, so it looks like it has been endorsed, and the fraudster gets paid because they simply forged someone else’s signature. 

Several types of checks can also be used for this purpose. These include cashier’s checks, certified checks, money orders, and traveler’s checks. Most of these scams cheat businesses by issuing fake checks and ordering goods worth thousands. By the time the business realizes they’ve been duped, it’s often too late.

Invoice Fraud

Invoice fraud involves the criminal misrepresentation of invoices for goods and services, or the alteration, deletion, or addition of data from an invoice. This type of fraud aims to steal money from businesses by creating fake invoices that are then submitted for payment.

As a business owner, you may be wondering how to prevent invoice fraud in your business. First, it’s important to know that there are several different types of invoice fraud and how they can affect your business. Second, you should understand what steps you need to take if you suspect someone is committing this type of fraud against your company. Third, you need to know what legal procedures exist if you report this type of crime to law enforcement officials after discovering it has occurred within your organization.

Payroll Or Tax Fraud

Payroll fraud occurs when an employee falsifies their time sheets or other documents to make it look like they worked more hours than they actually did. This can result in significant penalties for your business, including fines and interest along with back taxes owed on income that one or more employees did not report.

There are several ways that payroll fraud can occur:

  • The employee creates fake timesheets for themselves or another person and signs them with their own name, date, and time, stamping them as accurate when they are not
  • The employee uses a different name on their timesheet than what’s listed on their W-2 form
  • An employee may submit inaccurate information about their own hours worked or other information about themselves to make it seem like they worked more than they actually did. 

than they actually did

Credit Card Or Online Theft

Credit card fraud is one of the biggest risks to your business. If you are a small business owner, you may not be aware of this problem. However, credit card fraud is very common in the United States and happens way more often than you might think. Credit card fraud is when someone steals another person’s card information uses it without permission and charges unauthorized goods or services to it. This can result in serious financial losses for both businesses and consumers.


Business owners may not be aware that they have different frauds to look out for. It is very important to note these types because each has its own set of risks. You must be aware and consult other business owners to learn what’s happening in the digital world. Look at trusted fraud prevention solutions from NICE Actimize to protect your business. 

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.