COVID-19 Poses Fraud Threats to Businesses

Scam artists know how anxious business owners are during the current coronavirus (COVID-19) crisis. They know that as you struggle to meet customer demands, pay employees and stay solvent, you’re more likely to drop your guard and fall for a fraud scheme. The last thing your business needs right now is to suffer additional financial losses. So keep an eye out for the latest ways that COVID-19 poses fraud threats to businesses: Fake suppliers Whether you’re a manufacturer seeking raw materials or a grocer desperate to keep shelves stocked, you may have trouble getting your usual supplies. If a regular supplier is temporarily — or permanently — shut down, be careful about doing business with unknown vendors. Many authentic-looking websites are, in fact, fronts for criminal operations,...

Using COVID-19 to Fleece Americans

As governments around the globe mobilize to defend their populations from the novel coronavirus, criminals are also mobilizing — using COVID-19 to fleece Americans. These opportunists have already found ways to use the fear and chaos associated with the pandemic to enrich themselves. But you can protect yourself and your business. Ripe opportunity Phishing emails that promise valuable information about the virus have been circulating for weeks. Fake COVID-19 websites loaded with malware have also popped up everywhere. And as many Americans start working from home, often on vulnerable home networks and devices that lack the latest security updates, hacking incidents are becoming more common. The federal government’s plan to send checks to Americans to help boost the economy will almost certainly bring scammers out in force. The...

Stealing the Identities of the Dead

It’s bad enough that the living have to worry about identity theft. But criminals also exploit the deceased with “ghosting” schemes. These thieves are stealing the identities of the dead to open credit card and service accounts and obtain loans and tax refunds. Here’s how to prevent fraudsters from taking advantage of your family. Stealing the identities of the dead: window of opportunity Months may elapse between the time a person dies and when financial institutions, credit bureaus and government entities update their records. This provides fraudsters with a big window of opportunity. Making identity theft even easier is the fact that victims aren’t around to monitor their finances and grieving families are often occupied with other matters. It can take as long as 60 days for a...

5 Best Practices When Investigating Employee Complaints

“All complaints will be swiftly and thoroughly investigated.” No doubt this sentence, or something similar, appears in your company’s employee handbook. Unfortunately, there will likely be a time when you’ll have to put those words into action. Whether an employee alleges discrimination or harassment, or reports a coworker for theft or fraud, you’ll need to handle investigating employee complaints appropriately. Keep these five best practices in mind to avoid unnecessary legal complications: (1) Maintain confidentiality Take every precaution to keep details of the allegation private — especially the identities of the accused and the accuser. Remind managers that they need to have all conversations behind closed doors, store all meeting notes securely and speak only to those people who are necessary to the investigation. Assure workers involved in...

Common Business Insurance Coverage Oversight

You may think your business has enough insurance already. What's a common business insurance coverage oversight? If you business is vulnerable to employee theft and fraud — and most businesses are — you may want to consider adding more coverage. Some insurance companies offer policies to protect against loss of money and property due to criminal acts by employees. Here’s how to decide whether your business needs one. Specialty coverage Employee dishonesty insurance can cover not only theft of money, property and securities, but also willful damage to property. If, for example, an employee smashes a computer or kicks a hole in a wall, it’s likely covered. And this type of policy covers losses from all employees. However, coverage generally is based on occurrences. So if more...

Be Careful When Applying for an SBA Loan

A Small Business Administration (SBA) loan can make big things happen for your small company. But the agency’s loan program is sometimes abused by con artists who know that many small business owners have little experience applying for financing and are, therefore, vulnerable to scams. Here’s what you should know when applying for an SBA Loan. Applying for an SBA loan: Background on SBA products The SBA provides various financing options with favorable terms and greater flexibility to small businesses and start-ups. It doesn’t disburse loans directly but gives lenders federal guarantees and backing to reduce lending risk. Individual businesses must themselves make arrangements with financial institutions that make loans. Three key SBA programs are: 1. SBA 7(a) loans. This is the flagship product. It typically frees up working...

Dont Contemplate Fraud Litigation without a CPA

You may already know how CPAs can help businesses uncover and prevent fraud. But what about when a fraud incident leads to civil litigation? Don't contemplate fraud litigation without an experienced CPA that can help your legal team collect and summarize complex financial documents and reconstruct lost or stolen records. CPAs can also serve as expert witnesses in court. From investigator to expert witness As a fraud investigation becomes a fraud case, CPAs can help identify critical evidence. They may also be enlisted to analyze and translate financial data for attorneys, insurers and other parties. These financial experts can be equally valuable with depositions by helping to frame questions that attorneys ask witnesses. They also are skilled at spotting inconsistencies and flaws in witness testimony. Once a case...

Has Fraud Corrupted Your Supply Contracts?

Has fraud corrupted your supply contracts? If your business solicits bids for goods or service contracts, there’s a risk that employees will solicit or accept kickbacks to favor certain vendors. Or, they might steer a bid to a vendor based on their personal ties to the company’s owner or employees. Here’s how to prevent this unethical — if not illegal — behavior from corrupting your business’s purchasing process. Kickbacks leave traces Kickback recipients accept bribes to steer business to certain vendors. Although kickbacks are common in some industries, they’re unethical and can severely damage a business’s reputation, cost you more than buying the same goods or services from other vendors and lead to legal entanglements. Fortunately, you can spot kickback activity if you know what to look for....

Jury Duty Fraud Schemes

Some fraud schemes refuse to die. Jury duty fraud schemes existed long before phishing, malware and other cybercrime methods became synonymous with identity theft. Yet just this month, the U.S. Marshals Service issued a fraud advisory about this old-school con that’s enjoying a resurgence. Common methods Here’s how jury duty scams work: Perpetrators posing as court officers, U.S. Marshals and other members of law enforcement call unsuspecting victims, warning them that they’re about to be arrested because they haven’t reported for jury duty. When the targets assert they haven’t been notified that they’ve been selected, the scammers ask for information to “verify their records.” The information the scammers want, of course, is a victim’s Social Security number and date of birth. Some go a step further and...

Healthcare Data Breaches Can Threaten Your Financial Well-Being

Like many sectors of the economy, the healthcare industry regularly suffers data breaches. Healthcare  data breaches can threaten your financial well-being.  Healthcare analytics company Protenus has found that nearly 32 million patient records were breached between January and June 2019 alone. Alarmed? You should be. However, there are steps you can take to reduce the risk that thieves will get a hold of your medical records and use them for nefarious purposes. Why they’re valuable Unlike other types of personal data, healthcare records command a hefty premium on the black market. That’s at least partly because criminals can potentially use information about an individual’s health to blackmail him or her. Also, stolen medical records include valuable details about people’s identities. In fact, there’s usually enough information in medical files...