There are a lot of issues to look out for when handling your own business and fighting frauds is one of the issues that you need to avoid and look into at the same time. Business is business and when you deal with other people about business, there are people whom you can trust and there are people who are really shady.
Fraudulent activities can be everywhere and yes, it could be in your company if you don't make the right choices. People say that the best way to deal with to have a reactive approach meaning you wait till you find the person doing fraudulent things and then you deal with them but the damage has already been dealt in this kind of process. You have to go for a more proactive approach like knowing who you are dealing with and which company you will have a business deal with. Prevention is always better than cure which means don't wait until you have someone messing with your business; avoid them from coming in is going to be a better approach.
There are a lot of reasons why you should know who you are dealing with. It is a good business practice to know your costumers; dealing with a lot of people can be stressful and it could lead to mishaps if you don't focus on your job. By preventing your company in getting deceptive people from entering and doing business with you will help you avoid losing money in the process. Direct losses will be the major concern when dealing with these kinds of people. You need to make sure that the people you are doing business deals with are the people who can be trusted and can boost you into the competition. You need to know your costumers because it helps you focus on the products and services that would best meet their demands. This is why you have to make use of the identity verification software or anti money laundering software because it enhances your capabilities of knowing each and every person that throws a business deal at you. This is a huge competitive advantage especially when there are a lot of companies around you that has the same products and services being offered.
You have to understand that in business, you have to be careful about every little business deal you accept; this is why you need to know who you are dealing with before accepting or signing anything. And, of course you must be aware of the anti money laundering regulations.
Get more info here: https://en.wikipedia.org/wiki/Identity_verification_service