Business

What is return fraud?  Return fraud is when someone purchases an item, uses it and then returns it even though there is nothing wrong with it.  Return fraud is also when an individual steals an item and returns it thereby creating a profit for themselves. These two examples of “return fraud” can be detrimental to a business if it is not controlled.  In order to cut down on return fraud, make sure you have a solid system in place for your employees. Require that the customers bring in a receipt and/or only give them store credit. Keep the customers happy so that they are repeat customers but also make sure your business is protected. 

Have you ever accepted a bill at the register that did not look or feel quite right to only find out later it was a counterfeit?  Sometimes, the businesses are not even aware that they have accepted counterfeit money until it is rejected by their bank. Unfortunately, the “money” is worthless.  What makes matters even worse, you may even give up the real currency by giving change to the counterfeit bills. Here are a few ways to detect counterfeit money prior to accepting it.  Look for the image of an eagle o the Federal Reserve seal. This will only be on denominations of $5.00 or larger. If you run your finger over the printing of a bill, the printing should be raised.  If the texture is smooth, you may have a counterfeit bill. For additional ways to spot counterfeit money visit the U.S. Currency website at www.uscurrency.gov.  

Payroll Fraud is one way an employee may try to fraud their employers.  Payroll fraud is more common in smaller businesses but can happen in large businesses as well.  One way an employee may commit payroll fraud is to request a payroll advance and simply not pay it back.  If you are not keeping track of your employee’s hours, an employee may lie about their reported hours and/or have a co-worker clock in or out for them without your knowledge.  A few ways to avoid payroll fraud is to do a background check on employees prior to their start date. Another solution is to hire a payroll service to do payroll for the business.  This allows the employer to approve all payroll PRIOR to it getting processed, thereby eliminating or cutting down on payroll fraud.