{"id":4725,"date":"2023-05-01T16:11:00","date_gmt":"2023-05-01T23:11:00","guid":{"rendered":"https:\/\/www.soundcu.com\/?p=4725"},"modified":"2025-10-27T12:08:58","modified_gmt":"2025-10-27T19:08:58","slug":"protecting-your-business-protecting-your-business-from-theft-and-fraud","status":"publish","type":"post","link":"https:\/\/www.soundcu.com\/blog\/protecting-your-business-protecting-your-business-from-theft-and-fraud\/","title":{"rendered":"Protecting Your Business: Protecting Your Business From Theft and Fraud"},"content":{"rendered":"<div class=\"co-flex_row co-flex_row__blue co-flex_row__long-form-text co-flex_row__next_row__blog-contributors\" >\n\t<div class=\"co-flex_row--row co-row\">\n\t\t\t<div class=\"co-long_form\">\n\t\t\t\t\t<div class=\"co-long_form--block co-long_form--block__nomedia prow items-start \">\n\t\t\t\t<div class=\"co-long_form--text pcol-md:12\">\n\t\t\t\t\t<div class=\"co-long_form--content\"><h2>Protecting Your Business: Protecting Your Business From Theft and Fraud<\/h2>\n<p>There are a number of risks that you\u2019ll face in business \u2013 from employee theft to a competitor using your intellectual property. It\u2019s your responsibility to safeguard your business from anything that may impact your survival and growth.<\/p>\n<p>Like most things in business, prevention is better than a cure; a little planning now could save you a significant financial cost in the future. Here are some of the most common issues faced by businesses.<\/p>\n<p>&nbsp;<\/p>\n<h3>Staff theft and fraud<\/h3>\n<p>To safeguard yourself and your business from being affected by employee misconduct it\u2019s important to take proactive steps to ensure opportunities for fraud are limited. A written policy of accountability and robust cash-handling systems will reduce the risk of theft or fraud.<\/p>\n<p>Here are some examples of employee misconduct that could have a significant effect on your business:<\/p>\n<ul>\n<li>Stealing products or stealing and selling to others at a lower cost.<\/li>\n<li>Stealing work time (such as an employee consistently leaving early or wasting time at work and keeping other employees from getting their work done).<\/li>\n<li>Excessive and unauthorized employee travel costs and expenses.<\/li>\n<li>Employees filling up their personal car with gas using the company-issued fuel card.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h3>Solutions to protect your business<\/h3>\n<p>Here are some practical solutions to start safeguarding your business:<\/p>\n<ul>\n<li>Outline specifically what\u2019s considered theft in any employment agreements with staff and what is deemed misconduct. Taking one piece of photocopy paper home may be ok but taking a ream of paper may not be.<\/li>\n<li>Train your managers to spot theft \u2013 a vigilant manager is usually the first and immediate line of defense against employee misconduct.<\/li>\n<li>Regardless of who it is (even a key employee) you must be seen to take action, otherwise you\u2019re viewed as condoning the action and it becomes an accepted practice.<\/li>\n<li>Limit the number of employees assigned a business credit card set card spending limits.<\/li>\n<li>Set up stock control software and systems to track all products in and out of inventory.<\/li>\n<li>Require two people to sign products in and out of inventory management systems.<\/li>\n<li>Remove cash handling by going online for all receipts and asking business customers to pay online.<\/li>\n<li>Set up stock control software and systems to track all products in and out.<\/li>\n<li>Deposit cash to your business account at least daily, if not more often depending on the amount of cash you carry.<\/li>\n<li>Pay for expenses via a business credit card rather than using petty cash.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h3>Customer payments fraud<\/h3>\n<p>Customer payments fraud is simply any kind of customer deception that leaves you paying for losses out of pocket.<\/p>\n<p>Here are some threats to be aware of:<\/p>\n<p><strong>Check fraud<\/strong><\/p>\n<p>A person commits fraud by writing several checks in a short period, knowing there are insufficient funds to cover all of them.<\/p>\n<p><strong>Credit card fraud<\/strong><\/p>\n<p>When someone illegally uses another individual\u2019s credit card or uses a stolen card.<\/p>\n<p><strong>Counterfeiting<\/strong><\/p>\n<p>A person could attempt to pass counterfeit cash or counterfeit checks at your business.<\/p>\n<p><strong>Solutions<\/strong><\/p>\n<p>Here are some top tips for preventing customer payments fraud:<\/p>\n<ul>\n<li>Perform credit and security checks on any credit you offer to other businesses, and don\u2019t forget to check the debt history of the owners.<\/li>\n<li>Only accept advance payments, or at least a deposit before commencing work to cover your material costs. If it\u2019s possible and relevant, ask for progress payments on a regular basis so you\u2019re being paid as you go.<\/li>\n<li>Do not allow employees to sell to friends and family (who could be receiving large unauthorized discounts).<\/li>\n<li>Educate your staff on common fraud techniques and how they can spot them. These include a customer having \u2018forgot\u2019 their photo ID so you cannot check their card details, or buying a small amount of product with cash (to trust them) then buying a large volume with a stolen credit card.<\/li>\n<li>Allow only a select few employees to accept payments from customers, and regularly change these employees so it\u2019s not the same person each time.<\/li>\n<li>If it\u2019s relevant only accept electronic payments and do not accept checks (if bad checks are an issue for your type of business).<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h3>Theft of ideas or brand<\/h3>\n<p>As competitors come into the market, you may find people copying any success you\u2019ve had. Make sure you have your intellectual property protected. You don\u2019t want others to piggy back on your hard work. The main forms of intellectual property are:<\/p>\n<ul>\n<li>Copyright \u2013 protection for original works of authorship, including literary, dramatic, musical, and artistic works.<\/li>\n<li>Trademarks \u2013 protection for words, phrases, symbols or designs that identifies the source of the goods or services.<\/li>\n<li>Patents \u2013 protection for inventions or discoveries.<\/li>\n<\/ul>\n<p>For more information regarding protecting intellectual property, visit the <a href=\"https:\/\/www.copyright.gov\/\" rel=\"noopener\">United States Copyright Office<\/a> or the <a href=\"https:\/\/www.uspto.gov\/\" rel=\"noopener\">United States Patent and Trademark Office<\/a>.<\/p>\n<p>Finally remember that you may have \u2018trade secrets\u2019 that you also want to protect such as the way you do business or customer budget cycles. In these cases, protect this knowledge by ensuring it\u2019s kept secret.<\/p>\n<p>&nbsp;<\/p>\n<h3>Theft of intellectual assets<\/h3>\n<p>Intellectual assets are things that you can\u2019t always protect legally, as it\u2019s too hard or too expensive. For example, it could be a relationship with a client, knowing customer buying cycles, or the time you\u2019ve spent understanding the needs of your customers. This information is hard to protect but a valuable asset all the same.<\/p>\n<p>Potential solutions:<\/p>\n<ul>\n<li>Sign a Non-Disclosure Agreement with key clients to reduce the chance they will tell everyone how you do business.<\/li>\n<li>Draft confidentiality agreements and restraint of trade clauses with staff to deter them from taking your trade secrets to a competitor if they leave.<\/li>\n<li>Keep your best ideas to yourself.<\/li>\n<li>Develop a plan to mitigate the key risks to reduce the chance of them happening.<\/li>\n<li>Make sure implement these risk reduction tactics as part of your operating procedures.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h3>Summary<\/h3>\n<p>Protection from theft and fraud is down to being proactive, prepared, and having good systems in place to both discourage and detect theft and fraud. It\u2019s important to take the necessary steps to protect your business, since it can save stressful, costly and time-consuming processes down the track.<\/p>\n<p>&nbsp;<\/p>\n<p><a class=\"co-button\" href=\"https:\/\/www.soundcu.com\/business-loans\/#businesscontactform\">BUSINESS LENDING \u00bb<\/a>\u00a0 \u00a0<a class=\"co-button\" href=\"https:\/\/www.soundcu.com\/business-services\/#businessservicescontact\">BUSINESS BANKING SERVICES \u00bb<\/a><\/p>\n<\/div>\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\n\t<\/div>\n<\/div>\n\n\n<div class=\"co-flex_row co-flex_row__last co-flex_row__blog-contributors\" >\n\t<div class=\"co-flex_row--row co-row\">\n\t\t\t<div class=\"co-blog_contributors\">\n\t\t\t\t\t<div class=\"co-blog_contributor\">\n\t\t\t\t<div class=\"co-blog_contributor--img_wrap\"><img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"300\" src=\"https:\/\/www.soundcu.com\/files\/HomanCharlene_scu-86_300x300.jpg\" class=\"co-blog_contributor--img\" alt=\"Charlene Homan Sound Credit Union Risk Management &amp; Compliance\" srcset=\"https:\/\/www.soundcu.com\/files\/HomanCharlene_scu-86_300x300.jpg 300w, https:\/\/www.soundcu.com\/files\/HomanCharlene_scu-86_300x300-150x150.jpg 150w, https:\/\/www.soundcu.com\/files\/HomanCharlene_scu-86_300x300-75x75.jpg 75w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/div>\t\t\t\t<div class=\"co-blog_contributor--content\">\n\t\t\t\t\t<h3 class=\"co-blog_contributor--name\">Charlene Homan<\/h3><div class=\"co-blog_contributor--title\">VP Risk Management &#038; Compliance<\/div><div class=\"co-blog_contributor--bio text-component\"><p>Charlene Homan serves as the Vice President of Risk Management and Compliance at Sound Credit Union, where she leads compliance initiatives and oversees risk management strategies, including BSA compliance, fraud prevention, quality assurance, and enterprise risk management. With over 15 years in the credit union industry, Charlene has advanced from an entry-level position to her current leadership role, demonstrating comprehensive understanding of credit union landscape that supports Sound Credit Union&#8217;s values while ensuring a strong commitment to regulatory compliance and risk management.<\/p>\n<p>As Sound&#8217;s appointed Compliance Officer, Charlene ensures adherence to all relevant laws and regulations while providing essential oversight on compliance issues, with the overarching goal of effectively serving members. She actively engages in professional development by attending key industry conferences and training programs. She is passionate about supporting her teams to create awareness to the membership and surrounding communities, with the intent to empower individuals to protect themselves from common scams and other fraud activities.<\/p>\n<\/div>\t\t\t\t\t\t<div class=\"co-blog_contributor--social\">\n\t\t\t\t\t\t\t<span>Connect<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/www.linkedin.com\/in\/charlene-homan-1a856662\/\" class=\"co-social_share--link\" target=\"_blank\" rel=\"noopener noreferrer\" aria-label=\"LinkedIn\">\n\t\t\t\t\t\t\t\t\t<svg class=\"icon-svg\" viewBox=\"0 0 24 24\" role=\"img\" aria-label=\"Icon LinkedIn\">\n\t\t\t\t\t\t\t\t\t\t<use xlink:href=\"https:\/\/www.soundcu.com\/wp-content\/themes\/soundcu-theme\/images\/sprite-icons.svg#linkedin\" \/>\n\t\t\t\t\t\t\t\t\t<\/svg>\n\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Protection from theft and fraud is down to being proactive, prepared, and having good systems in place to both discourage and detect theft and fraud <a href=\"https:\/\/www.soundcu.com\/blog\/protecting-your-business-protecting-your-business-from-theft-and-fraud\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":12,"featured_media":9660,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","_searchwp_excluded":"","footnotes":""},"categories":[49],"tags":[],"class_list":["post-4725","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-commercial"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.soundcu.com\/wp-json\/wp\/v2\/posts\/4725","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.soundcu.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.soundcu.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.soundcu.com\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/www.soundcu.com\/wp-json\/wp\/v2\/comments?post=4725"}],"version-history":[{"count":2,"href":"https:\/\/www.soundcu.com\/wp-json\/wp\/v2\/posts\/4725\/revisions"}],"predecessor-version":[{"id":17383,"href":"https:\/\/www.soundcu.com\/wp-json\/wp\/v2\/posts\/4725\/revisions\/17383"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.soundcu.com\/wp-json\/wp\/v2\/media\/9660"}],"wp:attachment":[{"href":"https:\/\/www.soundcu.com\/wp-json\/wp\/v2\/media?parent=4725"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.soundcu.com\/wp-json\/wp\/v2\/categories?post=4725"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.soundcu.com\/wp-json\/wp\/v2\/tags?post=4725"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}