As the level of technology continues its steady climb, business owners are gathering techniques on how to grow their businesses, and they mostly get these techniques in the cyberspace.

However, there are some instances when the economy becomes sluggish, leading to the appearance of brilliant criminals and sinister individuals bent on stealing large sums of money. According to business professionals, small businesses lose over $20,000 in fraud incidents. These incidents can lead to premature business collapse and even bankruptcy.

Industry experts believe that business frauds are divided into two categories: internal and external. Internal fraud involves an accomplice within the business, and this is commonly referred to as an 'inside job'. External fraud involves one outside party, such as merchants with overcharging fees or clients using stolen credit cards.

Business owners and economic strategists across the world have come up with handy solutions that can protect the businesses of entrepreneurs:
  • Business owners must validate all incoming checks, invoices, and transactions. All accounting processes should be consistent.
  • Dedicated banks must be contacted regarding wire transfers. Business owners must always be wary regarding policy changes to prevent frauds.
  • Unfamiliar fund sources should be reported to authorities. Phishing sites are common nowadays. Expert hackers can steal bank account information in various ways. Hence, sources of funds and loans must always be credible.
  • Business experts recommend start-up entrepreneurs to install accounting software for small businesses. By using an accounting software, the financial situation of the business is secured for a long time. There are many online accounting programs that can fit within a business's budget.
The Human Resource department of any business is also crucial to preventing the success of fraudulent methods. Hundreds of HR experts are certain that a detailed interview process is needed to determine if an employee can be trusted enough to join the business team.