While people say money is the root of all evil, the reality is a bit more nuanced. The lack of currency is generally where the evil is centered. For proprietors, this means keeping an eye out, as workers can be tempted to avail themselves of opportunities to profit at your expense. Consider these strategies for preventing employee fraud in your business to minimize those opportunities.
Understand Causes and Watch for Symptoms :
In most cases, those who commit fraud are suffering from some sort of financial pressure. While it may not always be obvious, if one of your team has
high debts, live a lavish lifestyle or has family members with money problems they might be prone to skimming. Typical justifications include, “The company owes me,” I should be getting paid more;” They have so much, they’ll never miss this”. Anything you do to foster an open environment in which your people feel valued will tend to mitigate fraudulent activity. Pay attention to attitude and living situation changes among staff members. Encourage open conversation among the people with whom you work. And, if one of your people tells you they’re having money problems look for ways to help.
Encourage Vigilance Among Everyone :
Hold fraud prevention seminars to subtly let your workers know you’re paying attention. Make everyone aware of the consequences of perpetrating fraud against the company. Establish an anonymous reporting system. Let everyone know when someone defrauds the business, they’re actually defrauding everyone who works there. After all, if profits are being skimmed away, there will be no reason to continue providing jobs.
Monitor Company Vehicles :
Instances of commercial auto insurance fraud, such as faking accidents are fairly commonplace. Similarly, fuel bills can be inflated and vehicles can be used for purposes other than company business. Geofencing and GPS location devices can ensure your cars and trucks go only where they’re supposed to be.
Establish Controls :
In a cash handling business, eliminate situations in which the same person is responsible for handling cash, auditing it and depositing it. This makes it too easy for someone to siphon funds away. Checks, purchase orders, and invoices should be monitored closely to ensure the numbering sequences are consistently sequential. Secondary authorization should be required for expenditures above a certain amount. Always investigate “new” vendors before paying invoices.
Insist Workers Take Time Off :
In addition to making you appear concerned about their well being (which makes people feel bad about stealing from you) time off means, the same person isn’t always doing the same job. If the regular person has been engaging in nefarious activities, the change will be notified when a new person takes over the position. Rotating people in and out of jobs at regular intervals is another good way to prevent fraudulent activity. This will reveal misappropriations when a new person takes over.
These strategies for preventing employee fraud in your business will demonstrate your vigilance, as well as enlist that of your workers. Again, when someone steals from the company, they’re stealing from everyone who works there. Do everything you can to help your staff understand their role in preventing this.
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