Fraud can take many forms. It could be through a business transaction, a purchase, or any other business to business or business to customer deals that seems to shorthand one side of the party. According to Kinney Fernandez & Boire, a reputable legal company in Florida, there are several criteria you have to look out for when you suspect fraudulent deals:
- Masking an identity of an organization or person, in order to validate something – this can take the form of identity theft or fake credit cards and other monetary accounts.
- Use of fake documents to pass verification in exchange for something else – faking bank statements, accounts, land or car titles and all other forms of assets in the document is another form of fraud.
- Breaking an agreement – some businesses promise outrageous benefits in their terms and conditions. When it’s time for payback, they cannot deliver. In this case, there is fraud between the business and its customers or another organization it is serving.
Are you a company or a sole proprietor looking for ways to deal with fraud when you suspect it? Kinney Fernandez & Boire gives insight to help react promptly in these sketchy situations.
Five Ways to Deal With Suspected Fraud
React calmly and present your case to the perpetrator
If you sense that something doesn’t add up, it may be normal reaction to burst into flames and get angry about the situation. However, it is not advisable to let emotions get in the way of proper judgement because it won’t help your case when the problems are handed over to legal authorities. What you can do instead is to present your case to the perpetrator and ask for an explanation. For example, if an employee tries to file a lawsuit because of an accident in your Florida business that you suspect didn’t really happen in the workplace, you can present the incongruencies directly to him. Do not be accusative, but rather ask why his statements and the information you have gathered appears to be inconsistent. You can also inquire with an attorney by searching terms such as slip and fall attorney Tampa.
Don’t file a case until you have enough evidence
Your attorney will be able to help you regarding what kind of evidence you may need to back up your claims. For example, if you suspect a fraudulent act regarding a car accident and you’re an insurance company in Florida, you can also find terms to search such as car accident attorney Tampa to help you understand if your client is telling the truth or not. Attorneys will also help you understand how to strengthen your case against this suspected fraudulent situation. Do not claim that the person committed fraud in public as this can be used against you as evidence of defamation.
Store all your financial records and have extra copies
If the fraud is financial in nature, it is important for you to back up all the transactions you had during the timeline that the suspected dealing was committed. This will also serve as a strong form of evidence which cannot be tampered with by the other party. When needed, you can also present this evidence in court in the event a hearing is required. Your attorney will help you organize these documents and help you compile the types of evidence that you need in order to strengthen your case. A lot of times, a third-party record of transactions will also be needed as these items cannot be directly tampered with by you or the defending party.
Be careful about trusting people or hiring new employees
You need to be warry when hiring new people or trusting businesses for deals. The best case scenario of fraud is termination, and thus you need to hire new employees. Review your new employee’s background through his curriculum vitae, ask interview questions, and follow your instincts about trusting people in your transactions. Usually, people who commit fraudulent acts will present mild signs at the beginning. These actions will escalate when their actions go unpunished. So if you notice an employee who you suspect may be testing the waters, be prepared to give due consequences as soon as possible.
Regain your reputation as a professional or a business
Sometimes, fraud can damage the reputation of your company. In order to prevent this, you can start a marketing campaign to re-promote yourself or your business. You can also release a statement when it is advisable to do so, and commit to serving your clients better.
Dishonest people can sometimes get in the way of your success. By following these five steps, you are more likely to prevent and recover from fraud.