How to Identify and Report QuickBooks Fraud and Phishing Scams?

Background checks for all employees, especially those who have access to money or payments accounts. Taking this small step could lessen the likelihood of employee fraud taking place. And you glance through your recently-posted transactions on your financial institutions’ websites.

Use this information to optimize your accounting processes and protect your business from preventable financial disasters. FraudPro’s McFarland is quick to point out that accounting software alone won’t shut down fraud completely. “Software like QuickBooks gives owners more knowledge about their business, but they still need the old gray matter to supervise tools and employees.” Isolate transactions to determine which amounts have been changed.

Train your employees to identify and prevent fraud

Warning signs of identity theft and financial fraud to protect your business and all of its data from falling into the wrong hands. According to the ACFE, in 2020 companies with hotlines detected fraud at a much higher rate than those without (49% compared to 31%). Instituting a formal fraud reporting system empowers all employees to participate in fraud prevention.

When you have enough documentation of the crimes, meet with the employee, lay out the case with all the information, and see if any other employees were involved. Have this software run a system scan and delete any program identified. If someone at your small business has given a scammer remote access to their computer, disconnect the computer from the internet immediately to stop their access.

Preventing Fraud With QuickBooks

Go to Company | Set Up Users and Passwords, then click Set Up Users. If you’re not sure how many users are supported on your license or need to add more, contact us. Click Next and then click the button in front of Selected areas of QuickBooks. On the next several screens, you’ll designate that user’s access in areas including Purchases and Accounts Payable and Checking and Credit Cards. For example, tell employees they should never use them on a public Wi-Fi network or install personal apps on them. Utilize better tools to help improve your accounts payable automation and streamline operations across the entire organization, a must for today’s middle market businesses.

Using Quickbooks Tools To Help Prevent Fraud also provides the Client Data Review Tool that helps you keep track of all transactions in your absence in your QuickBooks files. The first basic rule would be to select your employees after a proper background check. But despite best intentions, thefts occur; using QuickBooks system to prevent misuse by employees is practical and works better. Discuss the cost to the business of Fraud including lost profits, adverse publicity, job loss, and decreased morale and productivity. Select several individuals as ethics counselors so employees can seek advice when faced with a problem. Print timesheets from QuickBooks and have the supervisor familiar with employees hours approve the time sheet and initial off on the overtime.

How to Respond to QuickBooks Fraud and Phishing Scams?

If you uncover questionable transactions, and do not have concrete proof, take care before confronting an employee, a mistaken accusation will cause damage to employee moral and could result in a lawsuit. Implement a support program at work that can assist employees struggling with mental/emotional health, family or financial problems. Conduct anonymous surveys to assess employee morale and find an outlet for employees to talk about pressures so management can find ways to alleviate pressures before they reach a boiling point. Customer complaints of missing invoices or transactions on invoices that were not ordered or received. A sophisticated employee knowledgeable in all aspects of payroll and payroll taxes could make a payroll liability adjustment, increasing federal and state withholding on their pay. Print every reconciliation report and file with the original bank statement.

Security should be considered whenever you deal with financial transactions – especially where the internet is involved. If we can be of assistance as you set up safeguards and company policies, let us know. As always, we’re available to answer any questions you might have about QuickBooks operations in general. A typical fraud scheme is where an employee creates a payment to a nonexistent vendor or a company controlled by the employee. In these situations it is common for the employee to have the checks mailed to his/her personal residence. Before adding a vendor to the vendor list, make sure they exist – check the phone book to see if they are listed and call them.