Fraud is an equal opportunity offender. It affects all businesses and industries, eventually. Some industries seem to be impacted more than others, although they may seem like an unlikely target to defraud. Law firms, in particular, present opportunities to engage in fraudulent activities thanks to the industry’s high volume of monetary transactions. Anders Virtual CFO Kristen Reinking, a specialist in providing CFO services for the legal industry, shared her insights in The April/May edition of the Nevada Justice Association’s publication, Advocate.
From poorly monitored cash to false vendor invoices, Kristen explains how fraud happens in law firms and explains the best practices to prevent it – including things like introducing weekly cash flow meetings, enrolling in positive pay and more. These controls come with an initial investment in time – but they pay back dividends in lost time and money.
“Despite the legal risks, some people will still take advantage of opportunities to commit fraudulent acts, especially when the cash is so accessible but poorly monitored. Strong controls not only allow for faster detection of fraud, but their very presence is also a preventative measure. Adjusting to the new processes may pose an initial challenge, but the security they’ll bring to your firm will be more than worth the effort.”
Read the article to learn more about the insights Kristen shared to help law firms deter and detect fraud: Fraud in My Law Firm? It’s more Common than You Think – Trust these Internal Controls to Secure Your Cash Assets
See how Anders works with law firms.
