Slate’s Law Blog

Five Things to Know About Business Fraud

five things to know about business fraud

If you have concerns that your business has been harmed as a result of business fraud, it is important to know that you can seek counsel from an experienced Santa Fe business litigation lawyer at Slate Stern Law. In the meantime, our attorneys want to provide you with more information about business fraud and what it can entail so that you can gain a better understanding of your circumstances. The following are five things to know about business fraud in New Mexico.

1. Business Fraud Affects Many Companies

A majority of American businesses are affected in some form by business fraud each year. Indeed, according to the Association for Financial Professionals, a recent AFP Payments Fraud & Control Survey revealed that about 82% of businesses large and small in the U.S. experienced some type of business fraud in 2019.

2. Business Fraud Can Result in Substantial Monetary Losses

When a business is harmed by fraud, it can experience significant monetary losses. Payments fraud is one of the most common types of business fraud impacting companies, and the AFP Survey revealed that more than 40% of businesses that reported fraud “experienced direct financial loss as a result of payments fraud.” Every year, billions of dollars in total are lost to different kinds of fraud.

3. Business Fraud Can Take Many Different Forms

You should know that business fraud takes many forms, and it is important to be able to recognize signs of any kind of fraud that could affect your business financially. Examples of business fraud include but are not limited to payroll and payments fraud, insurance fraud, money fraud, return fraud in retail businesses, embezzlement, and identity theft.

4. You Must File Your Business Fraud Claim Before the Statute of Limitations Runs Out

Most business fraud claims in New Mexico have a four-year statute of limitations. What this means is that, under New Mexico law, you will need to file your lawsuit within four years from the date of the incident that has given rise to your business fraud claim. Yet before you assume you have four years to file a lawsuit, it is essential to have a lawyer evaluate your case and to confirm the timeline for filing a lawsuit.

5. You Can Take Steps to Minimize Business Fraud Risks

There are many ways that businesses in Santa Fe can reduce the risk of business fraud by taking preventative steps. For example, you can conduct background checks on employees, establish policies at your company for employee actions and behaviors, and set up audits of your business to catch fraud. If you want to minimize business fraud risks at your company, you should seek advice from a business fraud attorney in New Mexico who can help with policies, practices, and procedures.

Contact Our Business Litigation Lawyers in Santa Fe Today

If your business has incurred losses because of fraud, or if you have concerns about business fraud affecting your company, one of our experienced New Mexico business litigation attorneys can speak with you about your circumstances. We have years of experience representing plaintiffs and can assist you with a claim if necessary. Contact Slate Stern Law today for more information.