Fraud on the rise for businesses and how to prevent it

An unfortunate aspect of business operations is the danger of fraud. Fraudulent activities can come from consumers or employees, and can have a significant impact on a company. According to Reuters, fraud in the healthcare industry is on the rise and costs businesses approximately $150 billion each year. The illegal activities are having a negative impact on the healthcare sector and taking money away from taxpayers, says the news source. Additionally, the Association of Certified Fraud Examiners released a report stating that instances of business fraud have increased recently due to the economic recession. About 55 percent of companies said the level of fraud in their operations has risen in the past year, and approximately half of those surveyed said it is because of financial pressure. While the majority of fraudulent activity is committed by employees, the report states that businesses must implement effective fraud prevention measures to guard against outside factors For companies such as short term lending firms, fraud prevention is essential to operations as employees and customers have access to large amounts of money. The Washington Post suggests business take a few steps in regards to prevention. Performing background checks and screenings on employees will help uncover any criminal behavior in the past. Also, educating staff on the clues of fraud can help keep better control on illegal activity, says the news source.