Safeguarding Your Business Against Employee Fraud

Preventing Employee Fraud

Every year, businesses all over the country are subjected to employee fraud. While big businesses are at risk, small and medium-sized businesses are equally (and sometimes more) at risk, primarily due to the lack of awareness or a false sense of security. If you, as a business owner are looking for ways to prevent employee fraud, read on.

• Establish a code of conduct.

Every business should have some form of a code of conduct that acts as a statement, which highlights that your business will not tolerate unethical or illegal behavior toward anyone such as the customers, vendors, employees, and the company itself. This code of conduct should be read by each new hire, and it should be posted around the workplace to remind the team.

• Pay attention to multitaskers.

In a business, one person may wear many hats. But the most dangerous multitasker is a solidarity multitasker who opens the mail, handles deposits, and files transactions. In short, one person should not be handling all of those financial aspects. Instead, separate out these tasks to different people so that the opportunity of theft is less likely to present itself.

• Lead by example.

An effective way to prevent fraud in your business is to create a positive work culture. As the business owner and being in a senior management position, you should lead by example by being honest and open. If the employees see that the team at the top is taking a careless approach, they are more likely to follow suit.

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