How small businesses can avoid fraud?

online, homeoffice work, title background, how to avoid fraud

Business fraud is a serious issue that could bring down a company, no matter its size. It occurs when a person or a company commits dishonest and illegal acts that result in a financial gain for that person or organization. Business fraud can often be hidden and appear to be a legitimate business interaction.

Do you have time for detecting and avoiding frauds?

Having your own business always comes with its own set of unique challenges. While creating strategies for your growth, launching new products or services, reaching potential clients, and looking for a partner, among many more elements, at all these stages you are exposed to the risk of fraud.

Companies, including small businesses, have never been as data-rich as they are today. It provides new opportunities for material fraud through data mining, analysis, and interpretation.

So answering the question for you – you (your company) must have time to avoid fraud.

Are you aware of how to detect fraud attempts?

Categories and types of frauds vary depending on the industry, location, or technology used in a company, but for sure, no business is 100% immune to the risk.

Small businesses looking for international opportunities should be aware of how to verify a potential client, partner, or investor. Simple “googling” the name is not enough, yet, cannot be ignored. Currently, OSINT tools offer multiple options of preliminary verification even without a profound study of the technique.

Verify with the official national registry

Let’s say you’ve got an interesting cooperation offer from a foreign entity. First, you should make sure that your potential business partner is a registered and active entrepreneur.

Most countries provide open to public information databases. Remember that all information requires a double check. For example, an address that is a must to confirm while verifying a company. The location where the company operates should be compared to the address where it is officially registered, with the reasons why it might be different. And even after that, you should check what other companies (if any) are registered under the same property. Multiple random companies registered under the same address should be a warning sign.

Continuing the basis of verification, check the other companies related to the primary entity and its owner(s) to ensure their business links and continuity of their activity.

Read more on: How to obtain information about Polish company?

Checking the registration data of a company is just the beginning! For details on how to verify a company, you can contact our team. Verificators can help you obtain information about your business partners, clients, debtors, or investors. Stay informed and avoid frauds!

- 09 April 2021 - fraud investigation