Safeguard your business against employee fraud


For some rogue staffers, lifting office supplies or seeking reimbursement on a few minor “non-business related” charges is mere child’s play, according to an article in CFO Daily News.

Examples given of in-house theft and employee fraud include getting reimbursed for false expenses, security expert finding and exploiting hole in company’s internal controls, company property going missing, stealing coins over a long period of time, employee issuing himself refunds for purchases made by customers, bookkeeper writing and cashing herself checks without any oversight.

Read the full article to see how employees did it.

There is also a link to an article on how to safeguard your business against dishonest employees:

  1. Double-check finances. Even if you have a trusted bookkeeper, it doesn’t hurt to take another look yourself. From bank statements to signed checks, making sure nothing is amiss can help save a lot of anguish down the road.
  2. Beef-up security. People steal less when they feel as though others are watching. Installing security cameras around cash-heavy areas in the office is a great way to keep employee theft down.
  3. Random audits. Enlisting an outside accountant to come in and periodically perform surprise audits of your books will decrease the chance fraudulent employees have to cover up their tracks.
  4. Get staffers involved. Often, employees have a good notion when something is going on in the office but keep silent for fear of retaliation. The more comfortable and safe staffers feel about the reporting process, the more likely they’ll be to help out. One option: Create a system (hot line, e-mail program, etc.) where employees can report suspicious activity anonymously.