Protect Your Business From Employee Fraud

Businesses already have enough on their plate with competition from outside sources, so fraud that takes occurs within a business can be viewed as an avoidable problem. Businesses must vigilantly lookout for signs that their employees may be trying to bring the company down from within for personal gain. Whether they’re seeking revenge, greedy or just plain bored, employees who commit fraud tend to get away with their crimes for a long time. That’s because, in many situations, the employees committing fraud are doing so in their respective roles within the company.

There are many different ways employees can commit fraud. One of the most common and most damaging ways this happens is when employees alter company data or orders to steal money or products. An employee might change payroll records to get inflate their hours with extra hours that they did not work; they may doctor accounts payable to duplicate payments to vendors, or they may simply take company property home with them at the end of the day. Another common type of fraud in the workplace includes intellectual property fraud, in which employees may try to steal sensitive information or produce and try and market counterfeit items as authentic. 

Although the consequences of fraud can be overwhelming to a company, there are measures businesses can take to shield themselves and stop prevalent types of fraud that could take place within their companies. For instance, businesses can protect themselves against fraud by cultivating a workplace culture that centers on employee satisfaction and collaboration. Doing so can prevent the feelings of disgruntlement that drive many to commit fraud. Splitting up vital tasks such as handling payrolls and accounts payable among different employees also reduces the chances that an employee will try to get away with something. But most importantly, managers need to establish precise expectations for employee conduct and ensure that they are communicated and understood clearly. 

This guide contains very important information about widespread kinds of fraud and some of the precautions that organizations can take to battle them.