How to catch a business partner committing fraudulent activities

One of the most difficult things a business owner can do is catch their partner committing fraud. For many, this thought would be unthinkable and it’s not something that is expected to happen in a partnership. But the reality is that fraud does happen in partnerships and when it does, it can have devastating consequences on both parties involved. In order to avoid being blindsided by fraud from your partners, there are steps you can take to help ensure that you don’t become a victim.

The post will then go on to outline what these steps are and how they work so readers know what to look for if they suspect their business partner is committing fraud.

1) The best way to stop any financial losses is to consider having all monetary transactions requiring signatures from at least two people.

There are many forms of Business Fraud including Accounting Fraud, Asset Misappropriation, Blackmailing, Bribery, Computer Intrusion/Hacking, Corporate Crime, Credit Card Fraud, Data Breach & Identity Theft, Fraudulent Insurance Claims and Insider Trading/Stock Manipulation/Market Abuse Schemes.

The best way to avoid being caught up in fraudulent business activities being committed by your business partner is to ensure cash entering and exiting the business accounts has to be signed off by multiple shareholders, including yourself, to help create transparency when it comes to company accounts. This will limit the chances of fraudulent activity being able to take place freely while also making it tough for a business partner to conceal cash he is trying to siphon from the company.

2) Keep an eye on your accountant or bookkeeper if they are working closely with your business partner.

You will often find a fraudulent business partner doing one of two things; spending more time than usual with your accountant if he is involved in any fraudulent activity your partner may be committing or, not communicating at all with your accounting team in an effort to withhold information that may incriminate him. Look for both of these patterns of behaviour to identify when you should be worried that fraud may be a possibility.

3) Be aware that most people that commit fraud are very good at what they do and create lies around their lies!

It can often be very tough to catch a fraudulent business partner as they often are very good liars, who will cover their tracks as they commit financial atrocities that endanger your business. The best way to stop this is often by hiring a private investigator, who can conduct a covert intelligence operation to uncover any fraudulent activity that is occurring through the use of covert surveillance and other professional covert techniques.

Have you carried out a fraud risk assessment? How thorough is your personnel-vetting process? Vetting is an ongoing best practice for wise business owners and large corporations, not a one-off investigation.

The business world thrives on change but knowing which changes are threats and which are opportunities are vital to success. P.E.L Consultancy Services helps corporate clients recognise risk and protect themselves from it.

P.E.L are here to help public listed companies, corporations and large commercial businesses by gathering intelligence and evidence to solve internal and external problems. Our corporate investigations are focused on detecting wrongdoings by employees, industrial espionage and company fraud.

All of our corporate investigations are legal and ethical, carried out to the highest standards of discretion and confidentiality possible.

Contact us today by emailing or calling 0203 432 0207 to talk to one of our specialist corporate investigators.

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