Employee fraud can have far-reaching implications for your business. Besides financial loss, the legal implications of having your customers’ data compromised can be overwhelming. If you are a victim of employee fraud, it is important that you take appropriate steps to pursue justice.
Cushioning your business against employee fraud can be quite challenging. Fortunately, you can take steps to minimize this vice and make it difficult for employees to steal from you. Here are some of these steps:
Establish a workplace code of conduct
Fraud prevention starts with maintaining complete control of your company’s day-to-day operations. And this is where a workplace code of conduct comes in. You must never tolerate or leave room for illegal or unethical activities toward your business, employees, customers and suppliers. When employees are made aware of the consequences of unacceptable behaviors, they will likely avoid fraudulent activities that might land them in trouble. Anytime you hire a new employee, be sure to have them read, understand and sign the organization’s code of conduct.
Have internal checks and balances in place
It is important that you put in place organizational checks and balances. This way, you will be able to keep tabs on everything within the organization. Even if you have had your accountant or manager for years, do keep in mind that people’s intentions can change overnight. Be proactive in tracking important business components like payments, inventories and invoices. Scheduling routine organizational audits can help you deter, detect and address fraudulent activities before things get out of hand.
Fraud costs businesses, small and large, thousands of dollars each year. Understanding your legal options can help you protect your rights and interests when dealing with fraud in your organization.