The Advantage of Due Diligence What is Due Diligence? Perhaps one of the most important elements of fraud protection is due diligence, which at minimum is a measure of prudence or responsibility that should be exercised in all instances.  Due diligence includes basic reasonable steps that should be taken by an individual or company prior to entering relationships, rather business or personal. Why Perform Due Diligence? Checks-and-balances is another term you often hear when discussing fraud prevention.  I consider due diligence a part of my checks-and-balance system.  When performing due diligence my goal is to discover, confirm or refute data. So, I check things out because I don’t want the other party to have more information that I have.  Thus, it’s my responsibility to arm myself with as much knowledge as possible so that I’m in a position of advantage or at least on a balanced playing field.  That way I can make a well informed decision.  I don’t ever enter a s