To prevent corporate credit card fraud, companies should limit the number of accounts and credit lines, issue cards only to authorized employees, and ensure physical security of the cards. Employees should swipe cards instead of sharing numbers and report any suspicious activity. Merchants should be carefully vetted for security.
There are several ways to prevent corporate credit card fraud. As with personal fraud prevention, the most important step to take when dealing with corporate credit card fraud is to be extra vigilant with all accounts and be prepared to report any unauthorized or unusual activity. Because corporate credit cards can have very high credit limits to facilitate large transactions, keeping those cards as physically secure as possible is also critical.
When issuing company credit cards to officers and employees, familiarize yourself with the company’s credit card policy. Cards should only be used for authorized business expenses and should not be loaned or shared with others. Individuals should keep clear documentation and present it with their statements to prove that there are no fraudulent or personal transactions on their statement.
Individuals holding corporate cards should be reminded that they are responsible for protecting the cards in their care. Whenever possible, they should physically swipe cards rather than sending numbers over the phone or online. Additionally, they should carefully examine all statements for any signs of peculiar activity. Such activity must be promptly reported to the card issuer and the company so that the card can be canceled to prevent further transactions.
Companies should also carefully consider whether individual employees need credit cards. Corporate credit card fraud can be limited by keeping the number of accounts associated with a business low and limiting lines of credit on individual cards. An employee who gets a credit card to only buy gas, for example, probably doesn’t need a large line of credit or can get a special gas card that can only be used for fuel purchases.
A common form of corporate credit card fraud occurs when employees leave and their cards are not collected and cleared. When an employee resigns or is terminated, all secured items that the employee has including office keys, ID cards, credit cards, laptops, company phones and other materials must be collected. If employees lose any of these items, the loss must be reported immediately so that the company can implement safety measures if necessary.
Merchants can be another source of corporate credit card fraud, by accident or intent. Businesses should only work with vendors who are capable of handling secure transactions and should ask vendors about the security of their business records. You may also want to ask vendors about their charging policies to ensure a legitimate charge isn’t accidentally assumed to be corporate credit card fraud.
Protect your devices with Threat Protection by NordVPN
