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How to avoid fraud at your independent insurance agency

Moving money poses the greatest risk of fraud for an insurance agency. Here's what agency owners can do to protect their business.

By Patricia Smith | May 12, 2022 at 11:15 AM
The higher the transaction volume, the greater the risk rises for fraud. Risk is present whether transactions are conducted by check, deposit, wire or electronic transfer. (Photo: JohannesS/Shutterstock) The higher the transaction volume, the greater the risk rises for fraud. Risk is present whether transactions are conducted by check, deposit, wire or electronic transfer. (Photo: JohannesS/Shutterstock)

Every independent insurance agency must protect its operations from fraud, including bank fraud.

Moving money ― both incoming and outgoing ― poses the greatest risk of fraud for an insurance agency. Collecting premiums, paying bills, administering payroll, paying commissions, and moving funds from or to depository accounts all require procedural protocols and consistent monitoring to mitigate risk for the agency.

 

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