Prevent Employee Fraud From Happening

Jan 13, 2022


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Audit the Books Regularly – Your company books should be routinely audited where there is cash, refunds, product returns, inventory management, and accounting functions. Additionally, occasional non-scheduled audits can also help detect fraud.

Train Employees To Prevent Fraud – Employees in fraud-prone areas of the business should know the warning signs of fraud, prevention skills and how to report suspicious behaviour or actions by coworkers and customers. Business owners should create a code of ethics that makes it clear that unethical behaviour will not be tolerated.

Know Your Employees – We all want to hire honest employees, but that is easier said than done. It s crucial that business of all sizes run background checks on potential employees. 

Segregate duties – Don’t leave an employee in a position to correct their own work. Independent checks serve as a deterrent to fraud if people know that their work is being watched they are less likely to commit fraud.

Use purchase orders – The payment, receipt and preparation of purchase orders should be separate functions and handled by different individuals. Use serially pre-numbered purchase orders and always verify any incoming orders.

Install computer security measures – Your computer systems and software could be used to divert money or inventory. Restrict access to computer terminals and records. Periodically change entry codes and check regularly to ensure that security procedures are in effect.

Go Through Business Bank Accounts – With online banking options, it’s easy to view account activity and statements whenever is convenient, and business management should do this frequently to make sure that paper-based statements in the office have not been manipulated.

Protect Credit Card Information – All businesses should also be wary of who they provide their credit card information to and should use secure, online bill payment services when possible, eliminating the potential for check fraud or theft.

Should you suspect fraud may be happening within your company get in-touch with Uphando Forensic & HR Services

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