In the business world, fraud is all too common and while technology has done wonders for security, it’s also opened the door to new types of fraud. There are identity theft fraud cases, investment fraud cases, and you may even have to deal with fraud based on the theft of an employee.
It’s not easy to handle when your business has been defrauded, but you can get through it. When your business has gone through fraud it’s important to know how to respond correctly. Having a prompt and appropriate response is important and it’s the best way to mitigate any damages. It’s also a good way to hold the scammers accountable because while you can hire an excellent criminal solicitor to help you, you need to be able to know how to close the gap to prevent it from happening again. Let’s take a look at what you should do if your business has been defrauded.
- Double check the fraud has occurred. Not every single loss of finance in your business meets the criteria for fraud. You have to show that misrepresentation has occurred and that it was material. You also have to show that deceit was the original intent. If you reasonably believe the lie and you suffered damages due to the fraud, then you have a case.
- Gather your evidence. Once you’ve become aware that you have potentially been defrauded, you need to start gathering documentation and evidence that is related to the fraud. This can ban from emails and text messages to letters, contracts, financial statements and any receipts. Usually any purchases or theft will come with the financial and paper footprint, so an additional precaution is to document all oral communication where you can. Often you don’t see the fraud coming until it’s too late, and when that happens, you have a court case ahead of you.
- Report it. Fraud is a form of theft, so if you don’t report it, you’re not going to have a case on your hands. Depending on the extent of the theft and the circumstances, you may need to speak to the FBI, your bank and credit card companies and insurance company, the National Consumer League, the US Postal Inspection Service, and more. You may even need to report it to your state’s attorney general’s office.
- Start building a case. Business Fraud plays out in many ways, and sometimes you know exactly who you should blame and where to find them, and other times it’s an anonymous fraud that occurs through the Internet. Sometimes there’s no way for you to find or identify who’s responsible for it. No matter what, you need to start working with a criminal lawyer as soon as you’ve learned that that fraud has occurred so that you can start working backwards to find the source of the fraud.
It’s not easy to fraud in your business, especially when you’ve built yourself up into something wonderful. Taking these steps can help you to get back on the right track.
