Richard Schueler On How Scam Can Influence a Business

richard schueler

Fraud has the prospective to disturb the activity of any business, be it big or small. But, smaller businesses are usually hit harder when employees or management engage in fake behavior. In some extreme cases, fraud can intimidate the survival of the business itself by restricting the confidence partners and customers have in it or by promoting mistrust within the place of work.

Richard Schueler says that the most obvious way in which fraud can influence a small business is financial loss. The simplest example is that in which employees are interfering with the normal flow of money in a way that makes it less understandable for the business owner. With businesses getting more and more intricate, it is harder to track down where each cent goes and bad faith tempts everybody at a given moment.

A company dealing with fraud is typically painted in black for investors and other business partners. No one wants to cope with entities that have a bad record and thus cannot be trusted fully. Bad news usually reaches the clients quicker than anything else does. While your businesses may still offer the best price/quality ratio and engages clients with clever marketing, the smallest slip downwards can put a significant percentage of your clients in the arms of your competition directly. Brand loyalty may stop or slow down the procedure but if we are talking about serious and recurring fraud, there is close to nothing you can do.

  • Fraud affects morale within the company and can disturb the normal momentum a small business depends on to access growth and cultivate constancy. But you put it; fraud is awkward for any of the parties involved. If one of the employees is uncovered as the one behind the fraud, the rest of the team will feel bad for not sensing the danger coming from within. On the other hand, fraud discovered at the management level can have overwhelming effects on morale.
  • Fraud makes business audit harder and more complicated. Auditors will look more closely at the company books before signing the financial statements and will most likely ask for information that is difficult to get. In more extreme cases, partners from which the accounting was outsourced to, may even decide to end the agreement. To put it in simpler words; once you do something wrong in the business world, everyone will double-check you.
How Can Fraud Affect Your Business? |
  • Most small businesses need bank loans to get going, at least in their first years of survival. News about fraud travels faster than anything else and you may be surprised to find out that some banks are considering the risk and asking for a higher price for credit. In most countries, banks share a common black book of companies that make problems and complications, and you may be surprised to find out that all banks adopt the same position about your need for credit.

Richard James Schueler says that the digital era is one in which fraud is easier to make and commit. It is enough to look at reports coming from all across the world to see that digital fraud is increasing in incidences year after year. Even if security measures are taken, the online environment your company is linked to is largely a Wild West. With adequate hacking knowledge and skills, almost everyone can steal sensitive information or disrupt your normal activity.

Hacking is usually traceable, but this is not a simple process. If you find yourself to be the victim of hacking, you will most likely need to access specialized services that provide enhanced protection. For a small company, this increases operational costs and can add a dose of bureaucracy.

Whichever way you look at it, dealing with fraud is one of the worse situations a small company can go through. Complicated relations, eroded confidence, loss of growth momentum – all of these are side effects of businesses who do not manage to keep it straight.  Fraud typically triggers a rethinking of the business strategy with the attached costs in terms of money and time.

At the same time, fraud can make a company more mature and aware of the prospective risks that are out there, waiting to happen.

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