Business Fraud and Tax Crimes: Do You Have to Worry? - Atty. Gilbert P. Aslor - Licensed Tax and Corporate Lawyer in Makati, Philippines

Business Fraud and Tax Crimes: Do You Have to Worry?

Business fraud is the illegal transaction, scam, and dishonesty within a business.

These days, a lot of organizations are more focused on development, expansion, and sustainability than on proper research, online limitations, and risk management due to constraints and a harsh environment. These can appear to be expensive, time-consuming, and paperwork-intensive.

However, this method makes a business especially susceptible to fraud and tax crimes, as many owners and management are uninformed of the dangers they confront.

Employees, customers, suppliers, and even unrelated third parties are potential business fraud and tax crime sources.

Because criminals employ a variety of techniques and strategies, fraud may appear complex and challenging to grasp at first.

Money Fraud

Money fraud can occur without being aware of it.

Nowadays, it is not rare to stumble across counterfeit money— due to a lot of illegal currency circulating in the system.

You will not gain any revenue from the sale if you accept counterfeit money. Worse, you can end up handing over actual money in exchange for a forged bill.

Learn how to identify whether money is counterfeit to protect your business from money fraud. Watermarks, microprinting, raised printing, and ink shifting are all features that should be visible on lawful cash. Also, instill in your personnel the habit of double-checking currency before accepting it.

Return Fraud

Return fraud has affected the majority of enterprises that sell items in some way.

Return fraud can occur in a variety of forms. Even if there is nothing wrong with a product, some people will buy it, utilize it, and then return it. You can also have scammers stealing your things and attempting to resell them for a profit.

Return fraud can be costly to your enterprise. You may not be able to eliminate all return fraud, but your procedures can help you restrict it.

You can need receipts to prevent return fraud.

Identity Theft

Your company could lose thousands of dollars as a result of identity theft. Fraudsters could hijack the identity of your company and use it to access your credit.

Financial statements, bank statements, and your tax identification numbers may get into the wrong hands if left without security. It’s also conceivable that information from your system will be stolen.

Maintain the security of your accounts and sensitive information to avoid identity theft. If you have hard copies, store them in file cabinets that only you have entry to. When it comes to digital documents, make sure you use strong usernames and passwords and stay away from cyber scams. It is also essential to not give out your personal information to the public or an individual.

Breach in Paychecks and Accounts

company’s bank account. Paychecks are extremely sensitive since they contain the routing and bank account numbers for your company.

Fraudsters could access and remove money from your bank account if a lost paycheck falls into the wrong hands. Consider segregating your payroll account from the rest of your company’s funds to minimize the losses this could do.

If a fraudster obtained access to your payroll account, they could only access a certain amount of money. Essentially, you should just put enough money into a payroll account to cover employee paychecks.

Direct deposit rather than paychecks is also a good idea. You deposit the employee’s pay immediately into their account through direct deposit.

You won’t have to pass out checks containing sensitive information this way. Employers all have the option to direct deposit mandatory to prevent such problems.

Tax Crimes

Tax evasion, money laundering, and other financial crimes pose a threat to every countries’ strategic and economic interests. They also diminish citizens’ trust in their governments’ ability to collect taxes from taxpayers, thereby depriving governments of cash required for long-term development.

Tax crimes are dynamic, evolving quickly to take advantage of the latest economic resources, and they frequently surpass regulatory changes designed to combat them.

Finding better ways to fight tax crime is significant during recessions, especially when lost revenue costs governments, businesses, and people a lot of money.

Greater transparency, efficient information analysis, cooperation, and information sharing between government agencies and countries are essential to discover and prosecute criminals and recover the proceeds of their unlawful operations.


When a scammer partakes in dishonest and illegal acts to gain financial advantage, it is known as business fraud. Business fraud is frequently concealed and disguised as a legitimate business transaction.

Detecting and preventing fraud should be a continuous process.

To combat fraud and protect their business from an ever-increasing threat, businesses should adopt and revise procedures and regulations.

Companies should consider providing employment protections and even incentives to whistleblowers to motivate them to come out when they become aware of unethical practices. Unfortunately, companies that engage in fraud frequently incentivize employees to ignore the deception, and how these tactics work.

Building an anti-fraud culture from the start is an integral part of avoiding this vicious loop in the first place. Business owners should put together a set of anti-fraud policies in good conscience that will regulate the business for years to come and be subject to public scrutiny before being altered or withdrawn if the business becomes public.

You can learn more about business fraud and tax crimes as well as ways to prevent them from Atty. Gilbert Aslor, a  corporate and business tax lawyer with extensive experience representing clients in a broad range of industries.

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