Top tips for preventing employee fraud

Employee fraud has risen recently. Whilst it is difficult to guarantee you will not be affected, there are various actions you can take to protect your business.

7 top tips for preventing employee fraud:

Do not pre-sign blank cheques. Sounds obvious, but it happens and we have seen fraud as a result.

Make sure all staff take annual leave every year. If someone is committing a fraud, they will need to be in control of their area of work at all times so no-one suspects. Ensure your staff take annual leave with someone else covering their role. This is a disincentive and can result in frauds being identified.

Be sceptical. It is interesting how many people affected by fraud say “I should have known”. Do not turn a blind eye. How is it that your lowest paid member of staff has just bought a new BMW?

Have different members of staff recording and paying invoices. Difficult to do in a small team but crucially important to ensure you only pay legitimate debts.

Review payment runs properly (with supporting documents). Do not leave it to chance and assume everything is fine.

Challenge your financial results. If you are not making as much money as you think you should be, then look into it. Are your costs inflated? Could this be due to employee fraud?

Beware of over-complicated procedures. Being blinded by science does not necessarily mean your employee is a genius. It could be a cover-up to ensure no-one understands what is going on.

Infographic_tips to avoid employee fraud

Whilst we can investigate employee fraud and quantify the loss, if the individual concerned has no assets there is little chance of receiving compensation. If you have any concerns about the fraud risk to your business, we are happy to talk them through and help you to review your internal controls and procedures to ensure they are up to scratch.

For more information

Please call us on:

01483 416232