How to Prevent Employee Fraud

How to Prevent Employee FraudStrategies for fraud prevention in your business.

Employee fraud is a significant problem faced by organizations of all types, sizes, locations, and industries. While all business owners would like to believe that their employees are local and working for the benefit of the organizations (and most of them probably are), there are still many reasons why your employees may commit fraud and several ways in which they might do it. The best protection against employee fraud and theft is prevention. Here are a few strategies to help.

Know your employees. Be alert to key indicators of potential theft, such as:

  • Sudden, apparent devotion to work and leaving late.
  • Lifestyles well above salary levels.
  • Strong objections to procedural changes related to financial, inventory, or supply matters.
  • Drugs and alcohol abuse.
  • Financial trouble at home.

Always perform background checks on potential hires. Checking references is one important step.

Train your employees in fraud prevention. Employees serve as the eyes and ears of a company and by ensuring your staff is knowledgeable about basic fraud prevention techniques, you’ll establish a first line of anti-fraud defense.

Review often. Conduct routine and unscheduled checks on high-risk areas of your business, including the financial and inventory departments for vulnerabilities and possible fraudulent activities.

Are you ready to secure reliable protection for your business? Contact Kurt Rolf Insurance Agency for reliable commercial insurance, serving Minnesota, Wisconsin, Florida, South Dakota, and Arizona.