Clearsale Blog

ClearSale at Paymentsjournal: Fraud Screening for Small Businesses: Risks & Resources

Rafael Lourenco

By Rafael Lourenco

Leading smart people to solve complex problems in dynamic environments is Rafael’s signature skill. As ClearSale’s VP of US Operations, Rafael combines the company’s innovation-driven culture and emphasis on communication with a deep understanding of the statistical tools that underpin excellent fraud protection. From his base in Miami, he oversees ClearSale’s US anti-fraud operation by leading its commercial, statistical intelligence and IT teams and providing technical and executive management for all the operation’s employees. During his 8 years with the company, Rafael has also planned and executed ClearSale’s international business unit, directed ClearSale’s statistical intelligence area, and helped manage the company’s growth from 25 to more than 700 employees, including more than 500 highly trained fraud analysts. Rafael has a distinguished academic background. He earned his master’s degree in economics and finance at FGV-SP (Fundação Getúlio Vargas-São Paulo), one of the world’s leading policy and economic think tanks. Rafael holds a bachelor’s degree with great distinction in statistics from UNICAMP (Universidade Estadual de Campinas), internationally recognized as one of the top universities in Brazil and in the world.

ClearSale at Paymentsjournal: Fraud Screening for Small Businesses: Risks & Resources

What small business need to know about fraud screening, risks and resources at PaymentsJournal:

Most small business owners don't expect to become fraud victims and they often don't know which fraud threats to guard against. But criminals know that small businesses usually make the easiest targets, so every small-business owner should have a clear understanding of the fraud landscape. Here are three major types of fraud and how to protect your business. 

Insider fraud risks for small businesses

Insider fraud – – a scheme perpetrated by a company's employees – is what many business owners are most concerned about. It's not the most common type of fraud that small online businesses face, but it does happen and can be very expensive.  

The median loss for a single case of occupational fraud is $150,000, according to 2016 figures from the Association of Certified Fraud Examiners. That figure is accurate for small businesses as well as enterprises, and in more than 8% of cases, the victim companies were also required to pay a fine for allowing the fraud to go undetected.  Those numbers mean SMBs are at disproportionate financial risk from insider fraud like check tampering, payroll falsification, skimming, and simply stealing cash.  

Resources to fight insider fraud 

  •  No matter how few employees your company has, these fraud controls are important:  
  •  Regular reconciliation of your books and payroll records 
  •  A way for employees to report suspected fraud 
  •  Proper employee training 
  •  Random checks of accounts and payroll records  

You may also decide to hire an outside accountant and payroll service rather than letting in-house employees handle those tasks. The Small Business Administration recommends purchasing business fraud insurance to protect you from occupational fraud losses. 

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Rafael Lourenco

Rafael Lourenco

Leading smart people to solve complex problems in dynamic environments is Rafael’s signature skill. As ClearSale’s VP of US Operations, Rafael combines the company’s innovation-driven culture and emphasis on communication with a deep understanding of the statistical tools that underpin excellent fraud protection. From his base in Miami, he oversees ClearSale’s US anti-fraud operation by leading its commercial, statistical intelligence and IT teams and providing technical and executive management for all the operation’s employees. During his 8 years with the company, Rafael has also planned and executed ClearSale’s international business unit, directed ClearSale’s statistical intelligence area, and helped manage the company’s growth from 25 to more than 700 employees, including more than 500 highly trained fraud analysts. Rafael has a distinguished academic background. He earned his master’s degree in economics and finance at FGV-SP (Fundação Getúlio Vargas-São Paulo), one of the world’s leading policy and economic think tanks. Rafael holds a bachelor’s degree with great distinction in statistics from UNICAMP (Universidade Estadual de Campinas), internationally recognized as one of the top universities in Brazil and in the world.

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