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How can you detect employee fraud in the workplace?

On Behalf of | Jan 24, 2022 | Fraud

No employer wants to think that one or some of their employees are dishonest. Unfortunately, the truth is employee or workplace-related fraud is on the rise. Most employers only take measures to boost controls after discovering fraud.

Fortunately, you can reduce employee fraud if you know the red flags to look out for. Here are questions that can help you detect if your employees are engaging in fraudulent activities.

Have your employees had a sudden change in lifestyles?

If an employee on a modest salary suddenly adopts an expensive, but unexplained, lifestyle — purchasing expensive assets like luxurious items, for example, then this should be a cause for concern. While a sudden and unexplained change in lifestyle may seem like an obvious red alert, most employers tend to overlook this. After, it can be difficult and even border on illegal, for an employer to audit the employee’s lifestyle. However, you can address this concern by engaging professional help in auditing your employees’ lifestyles.

Are your employees resisting new control systems?

If your employees are developing resistance to any internal control initiatives, then this could be a red flag that they could be hiding something. If this happens, you may want to understand the reason for the resistance. Of course, it is normal to resist some proposals, like a new schedule. However, it pays to establish where the resistance is coming from so you can address the issue.

Are your employees adamant about taking their leave?

Employees who are overly protective of their work activities may be up to no good. Also, when employees are reluctant about going on leave, it could be indicative that they do not want their duties taken over by someone else who might uncover something fishy. You can overcome this challenge by developing a job rotation policy to ensure that employees are able to move from one role to the next during their tenure at the organization.

The impact of employee fraud in the organization can be far-reaching. Besides financial loss, employee fraud can also dent the organization’s reputation. This is why every employer needs to know how to detect and address the subject of employee fraud in the workplace.

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