How To Spot Employee Fraud

Aug 6, 2021

Fraud

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Small businesses are much bigger targets of employee fraud than larger corporations. As a small business owner one of the biggest leaps of faith you face when starting out is believing that you have hired honest, trustworthy employees. When you trust your employees, it can be difficult to think the worst of them, even when there are red flags. Here’s are a few ways how to spot the signs that your employees are being dishonest.

Personal Risk Factors – Does the employee have debt or family pressures? Is the employee going through a divorce or separation? Is the employee a known gambler? Does the employee have a history of drug abuse?

Refusal to Take Leave or Refusal to Share Duties – If the employee in question is in a position to make or to receive payments or in a position to have a bit of control of the company’s finances or financial records by them refusing to take leave or to share duties may indicate that the employee does not want anyone else to have access to records. 

Recent Changes in Employee’s Lifestyle – Has the employee recently purchased a new property, vehicle or has gone on a lavish holiday? If so then you need to ask yourself if it matches up with their income.

Payees on Cheques Do Not Match General Ledger Entries – This may be indicative of inappropriate payments, and merits further investigation with the entity that received the payment.  

Questionable Invoices – Where invoices are missing contact information, or details regarding the goods or services provided, an investigation should be done.

Should you need assistance with employee fraud get in-touch with Uphando Forensic & HR Services


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