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11/6/2017 |
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Keeping Your Practice Safe From Credit Card Fraud |
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Keeping Your Practice Safe From Credit Card Fraud
from Sidekick Dental Magazine
Practice embezzlement has been on the rise in recent years. In fact, three out of four physicians will suffer some financial loss from employee dishonesty over the lifetime of their practice, according to the Medical Group Management Association. But whether a known party or stranger:
- It usually takes about 18 months for evidence of fraud to surface
- Losses can reach the mid-six figures by the time criminal activity is detected
- Know that some fraudsters wait to target businesses over long holiday weekends
Nipping fraud in the bud is far easier then dealing with its aftermath. Practices should implement internal controls just like any business—like closing out the credit card machine daily with manager oversight to approve refunds or voids.
For your business credit cards, some basic precautions can go a long way in protecting your practice against theft, or at least minimizing the damage.
- Control who sees your credit card information. If your receptionist opens your mail, you might instruct this person to give unopened credit card bills to you or your bookkeeper. Have all statements scanned into a password-protected computer then shred the paper documents. Better yet, ask that all business credit cards be managed online to save time and avoid any mail fraud issues. And it never hurts to have more than one employee involved in your accounting process for good oversight.
- Make sure statements are reviewed ASAP. Report anything suspicious no matter how small. A common criminal tactic is to make small purchases on a compromised card, typically $5 or $10, and wait to see if the fraudulent transaction is noticed before making larger purchases.
- Do random statement reviews. If it’s not feasible for you to review all your credit card statements, review a random selection every few months to stay on top of your office spending patterns. (Do the same with a random selection of bank reconciliations and statements.)
Read full article Sidekick Dental Magazine.
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