To prevent commercial credit card fraud, companies should closely monitor accounts, keep cards physically secure, educate employees on company policy, limit credit lines, collect cards from departing employees, work with secure vendors, and report any suspicious activity immediately.
There are several ways to prevent commercial credit card fraud. As with personal fraud prevention, the most important step to take when dealing with business credit card fraud is to look very closely at all accounts and be quick to report any unauthorized or unusual activity. Because corporate credit cards can have very high credit limits to facilitate large transactions, it’s also critical to keep these cards as physically secure as possible.
When executives and employees receive business credit cards, they should be familiar with the company’s credit card policy. Cards must only be used for authorized business expenses and must not be loaned or shared with others. Individuals should keep clear documentation and submit it with their statements to demonstrate that there are no personal or fraudulent transactions on the statement.
Individuals who hold company cards must be reminded that they are responsible for protecting them in their care. When possible, they should swipe the cards physically rather than submitting numbers over the phone or online. In addition, they must review all statements carefully for signs of peculiar activity. Such activity must be immediately reported to the card issuer and company so that the card can be canceled to prevent further transactions.
Companies should also carefully consider whether individual employees need credit cards. Business credit card fraud can be limited by keeping the number of accounts associated with a business low and limiting credit lines on individual cards. An employee who is given a credit card to buy gas only, for example, probably doesn’t need a large line of credit or may be given a special gas card that can only be used for fuel purchases.
A common form of business credit card fraud occurs when employees leave and their cards are not collected and cancelled. When an employee resigns or is terminated, all protected items the employee has, including office keys, identification cards, credit cards, laptops, company phones and other materials, must be collected. If employees lose one of these items, the loss must be reported immediately so that the company can take security measures if necessary.
Vendors can be another source of business credit card fraud, by accident or intent. Businesses should only work with vendors who can handle secure transactions and should ask vendors about the security of their business records. It’s also wise to ask vendors about their billing policies to ensure that a legitimate charge isn’t accidentally deemed to be business credit card fraud.
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