Protecting a company's fiscal assets is a top priority in accounts payable management. Consumers of solutions that help mitigate risks are more protected by AP fraud, but there are cost-effective ways that individuals can better safeguard their money, reported the La Crosse Tribune.
How to manage funds: Tips for avoiding clever fraud schemes
Businesses and individuals alike are at risk for theft. With advances in Internet navigation allowing for more online transactions to occur, the possibility of cyberattack has increased. To prevent unwanted activity in a secured account, the source recommended working directly with a reputable advisor who can help keep track of finances. Actions to prevent fraud should not stop there, however. The source noted that reputation is not necessarily enough and advised individuals to do a little more research into the company that might be called upon to manage their funds.
Even after that step is complete, the La Crosse Tribune reported that payment should never be issued in the form of a personal check to the financial adviser's name or the represented company. Instead, individuals utilizing this strategy should make checks payable to the third-party custodian who should be handling the transfer of funds, such as the adviser's banking institution.
An example of the criminal behavior that can arise as a result of failing to do this was reported by the Western Advocate recently. According to the source, Jacqueline Millie Brearley faces four years in prison for more than 50 charges of accounts payable fraud. Clark Tanks, where the accused worked, lost approximately $5,555 in misappropriated funds. The news provider reported that in this instance, Brearley redirected a client's payment into her own bank account.
It is difficult to determine whom to trust in transactions involving large sums of money, but by implementing any of the strategies above, individuals will have a better chance at avoiding a loss of their assets. Additionally, leveraging an AP recovery solution will help stymie the negative effects of embezzlement.