Business crime is rampant these days. Represents any form of fraud or breach of trust. Often, those actions have a detrimental effect on any business – from long-term and costly assessments to significant reputation damage and financial loss.
In some cases, such a crime may cause you to shut down your business or company.
Crime testing and having appropriate security measures in place, and hiring an employment attorney to deal with employment-related business crimes, can save your business from business crime damage.
Do you wonder what is the best way to prevent such crimes? The first step is to identify potential cases within your organization. Read on to learn more business criminal cases that you should strive to avoid.
5 General Business Cases
Major organizations such as Enron Corporation have collapsed and some have been shut down due to white criminal charges. Here’s a look at 5 common business crimes that could cause your company to crash or leave you with a huge loss and a bad reputation.
Fraud is one of the world’s leading crimes. The fact that there are so many types of fraud makes this a very common crime for any organization, large or small. Other common types of fraud that should be noted in your organization include corporate fraud, insurance fraud, security fraud, and Ponzi schemes.
Bernie Madoff is best known for one of Ponzi’s historical programs. Such schemes include fundraising for investors to fund fund companies with the promise of high returns from capital invested.
However, fraudsters pay only a small number of older investors using the money collected from new investors.
2. Tax Avoidance
Of course, no business owner enjoys paying taxes. As that is a government requirement, failing to pay your business taxes as required may land you in a long and expensive court. However, over the years, many businesses have developed ways to avoid paying taxes.
Some corporations commit these crimes by using false tax returns or by providing false information about corporate assets. In some cases, managers and business owners plan to avoid paying taxes in full.
If your accounts or financial managers do not pay their taxes as required, you risk losing your business or losing some expensive claims.
Bribery is now being used by business people and individuals as a “stepping-stone” for growth. As businessmen are willing to do whatever it takes to fulfill certain aspects of the organization, bribery has become a regular part of business.
In most cases, bribes are paid for unnecessary deals. Most bribes are paid in various forms to form a general business agreement.
For example, kicking back is a common term used to refer to a bribe in which people co-operate in the act. In 2013, William Rapfogel was fired for allegedly receiving a certain amount of money from an insurance broker. Giving or accepting a bribe in support of a business proposal or application is not permitted.
4. Embezzlement of Funds
Money laundering is the process of taking money from a person or a business. Business organizations and employees are responsible for these crimes.
Often the availability of certain gaps in the operation of your business and / or financial management can lead to misuse or theft of the company
funds. It is important to use your investors’ funds carefully because any misuse makes your company liable for fraud.
Money laundering is a case of old business. Entrepreneurs who engage in illegal businesses try to legalize their money through laundry. Companies bring in money through trading such as their earnings. Often, money collected from illegal spending is used on illegal activities such as financing terrorist activities.
Steps to Avoid Common Business Crimes
Now that you know about common business crimes, the next question should be how you can prevent them.
The following are some tips to help you avoid this crime:
• Adopting effective verification measures to prevent fraud and related crimes
• Always check your employees’ activities for any unusual behavior
• Hold a reputable law firm for guidance on business crime
• Invest in reliable technology to find and prevent online activities that may lead to certain business crimes
• Hold regular business crime training sessions to equip team members with the necessary skills and knowledge to identify and prevent behavior that could lead to such crimes.
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Over the years, the level of business crime has skyrocketed. Your business is at risk of any kind of white crime – from bribery, money laundering, tax evasion.
Often, your employees are one of the main sources of business crime. However, having the right steps including engaging with a reputable law firm can save your business a lot in terms of debt financing, financial losses, and business reputation. Contact HKM Employment Lawyers for legal representation and advice on all matters relating to employment