Besides having a Fraud Prevention Strategy in place, there are also 6 simple ways which every business can implement to prevent fraud from taking place.
* Know Your Employees: Fraud perpetrators often display behavioural traits that can indicate the intention to commit fraud.
* Make employees aware of potential fraud types and set up a reporting system: Since many employees are hesitant to report incidents to their employers, consider setting up an anonymous reporting system.
* Implement Internal Controls: If you do not have an internal control process or fraud prevention program in place, then you should hire a professional with experience in this area.
* Monitor Employee Vacation Balances: It is also a good idea to rotate employees to various jobs within a company. This may also reveal fraudulent activity as it allows a second employee to review the activities of the first.
* Hire Experts: Certified Fraud Examiners (CFE), Certified Public Accountants (CPA) and CPAs who are Certified in Financial Forensics (CFF) can help you in establishing antifraud policies and procedures.
* Live the Corporate Culture: Business owners and senior management should lead by example and hold every employee accountable for their actions, regardless of position.