The Case:

This is a real-life situation where a mid-sized manufacturing client almost wired $250,000 to a vendor for an urgent equipment payment. The email looked legit—same logo, "CFO"-approved, and even referenced an actual project. Their new dual-approval rule required a second sign-off. When the AP manager called the CFO to confirm, he was unaware of the request.

The 5-Minute Fix That Prevented Disaster:

A month prior, we noted that there was no training on Vendor Management, so we offered a quick two-hour workshop that covered the basics of potential red flags. Three weeks went by, and the client received a suspicious e-mail where they did exactly what we showed in the workshop:

1. Verified the email domain – The "reply-to" address was subtly incorrect (e.g., "vend0r.com" vs. "vendor.com").

2. Called the vendor – Used a pre-approved contact number (not the one provided in the email).

3. Transaction was blocked – The vendor's account was fake.

Why This Matters:

This was a classic Business Email Compromise (BEC) scam, the #1 fraud threat, according to the FBI.

-The client’s only protection? A simple control was added 3 weeks earlier.

Fraud costs businesses an estimated 5% of their annual revenue (ACFE). Worse yet, small and mid-sized businesses are the most vulnerable, often lacking the robust controls of larger corporations.

The good news?

80% of fraud can be prevented with simple, proactive measures.

To help you safeguard your business, we’ve compiled a 20-Point Fraud Prevention Checklist—based on industry best practices and real-world fraud cases.

How to Implement These Controls

• Start Small: Focus on high-risk areas, such as payments and payroll.
• Train Employees: Ensure staff recognizes fraud red flags.
• Use Technology: Automate controls where possible (e.g., MFA, positive pay).
• Review Regularly: Update policies as fraud tactics evolve.

Why Fraud Prevention Matters

Fraud isn’t just a financial loss—it can damage your reputation, disrupt operations, and even lead to legal consequences. Common schemes include:

• Employee theft (e.g., payroll fraud, expense padding)
• Vendor fraud (fake invoices, altered payment details)
• Cyber fraud (phishing, business email compromise)

Implementing strong controls reduces risk, improves compliance, and builds trust with stakeholders.

Need Help? Get a Free Fraud Risk Assessment

Fraud prevention is proactive, not reactive. If you’re unsure where to start:

✅ Download our Full Fraud Prevention Checklist
✅ Book a Free Consultation to assess your risks

Protect your business today—before fraud strikes.

Final Thoughts

Fraudsters target weaknesses, not just businesses. By implementing these 20 controls, you’ll drastically reduce risk and create a culture of accountability.

Which control will you implement first? Let us know in the comments!