There are a number of ways to prevent fraud committed with business credit cards. As with personal fraud prevention, the most important step to take when addressing business credit card fraud is to be highly observant of all accounts and to be prompt about reporting any unauthorized or unusual activity. Because business credit cards can have very high credit limits to facilitate big transactions, keeping such cards as physically secure as possible is also critical.
When officers and employees are issued business credit cards, they should be familiarized 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. People should keep clear documentation and submit it with their statements to demonstrate that there are no fraudulent or personal transactions on the statement.
Individuals who hold company cards should be reminded that they are responsible for securing the cards in their care. When possible, they should physically swipe cards rather than submitting numbers over the phone or online. In addition, they should review all statements closely for any signs of peculiar activity. Such activity should be promptly reported to the card issuer and the business so 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 lines of credit on individual cards. An employee given a credit card to purchase gasoline only, for example, probably does not 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 canceled. When an employee resigns or is fired, any secured items that employee has including office keys, identification cards, credit cards, laptops, company phones, and other materials should be collected. If employees lose any of these items, the loss should be immediately reported so that the business can take security measures if necessary.
Vendors can be another source of business credit card fraud, either by accident or intention. Businesses should only work with vendors who can handle secured transactions and they should ask vendors about the security of their business records. It is also advisable to ask vendors about their charging policies to ensure that a legitimate charge is not accidentally assumed to be business credit card fraud.
