Fraud prevention

Stopping money leaving the business dishonestly, from outside and inside.

What it means

Business fraud includes invoice redirection, mandate fraud, CEO fraud, procurement fraud, expenses abuse and payroll fraud.

Why it matters

Small businesses are targeted precisely because controls are thin and one person often approves and pays. Losses are frequently not recoverable.

What it looks like in practice

The controls that work: dual authorisation on payments above a threshold, verifying bank detail changes by phone on a number you already held, segregating who raises and who pays, and reconciling the bank weekly.\n\nSee phishing for the attack side.

What to watch out for

Internal fraud is more common than owners expect and is usually found by accident. Segregation of duties is uncomfortable in a small team and it is the only real control.

Where to get proper advice

Report Fraud (formerly Action Fraud) at reportfraud.police.uk, your bank's fraud team immediately, and your insurer — some policies cover crime and many do not.