SMEs cover 90 per cent of the private sector businesses in the economy. But, nowadays there have been increasing cases of fradulent in the small medium entreprises. The most widely recognised variables of frauds in SMEs are the low assurance among workers and frail interior control inside the associations. Regardless, research on extortion including SMEs is restricted, but the significance of SMEs to the economy.
BW Businessworld had a detailed talk to Mohan Ramaswamy, CEO & Founder of Rubix Data Sciences on it.
What kind of frauds harm SMEs of India?
Scamsters go after small businesses, as they are plentiful in number and make easy targets. SMEs have to try and convert any sales opportunity they find with their limited means, making them very vulnerable to fraudsters who prey on them with malicious intent. The following are some common frauds that SMEs fall prey to:
Purchase order scam: Fraudsters express a desire to place an order and claim to be from a well-known retailer, supermarket, or manufacturer. They do everything to make themselves look genuine and tempt the MSME with a large order quantity with promises for more subsequent orders. Once the MSME takes the bait, they place an order with a genuine company’s address on the Purchase Order, with a different delivery…
