Simple start in preventing fraud

By Emily Zuver

Fraud: It can be a scary situation if you find yourself there, and it is becoming increasingly more popular. You may not think your business could be a target for fraud, but it can happen to anyone. Developing clear best practices can safeguard you against potential fraud schemes.

I’d like to encourage you to start by reviewing your bill payment process.  Do you have a process in place? Typically, you would gather your bills, enter the information into the bill pay platform, and send the payments.  Here are some tips to help you build best practices for your business.

First, gather bills that need to be paid. Decide on a frequency for when you will pay bills. This allows you to dedicate time and attention to bill payments rather than rushing through, which can help reduce potential fraud.

Request a W-9 from any new vendors you will be paying. This request verifies the businesses’ identity and provides accurate tax information.

If you are paying vendors via ACH, request the ACH information through your bill pay processor or by using a specific ACH form. This ACH form should be specific to your business with something as simple as a company logo.  The logo would help in identifying fraudulent ACH information. If the vendor returns a different form, it would raise a red flag. Call the vendor and ask them to resend the information on the correct form. Once the correct ACH form is received, call them back to verify the information. Also, if a vendor sends you updated payment method information, call them to verify that this change is correct.

After vendor information and bills have been entered, have someone else review and approve the payments. Have someone else reconcile accounts regularly. Segregation of duties can provide an added layer of security by offering an extra set of eyes.

Finally, educate yourself about common fraud schemes and how to recognize them. Question and report any suspicious activity. Your preferred bank or accounting firm may have articles on their website or social media platforms that you can reference.

If you need further assistance with identifying fraudulent activities or establishing best practices on the farm or in your agribusiness, please reach out to me today.