Businesses have enough to worry about; one of the major things being competition from outside sources, so fraud that takes place within a business can be viewed as an avoidable problem. Not only do employers have to be extremely vigilant to defend against external threats from their competitors, but they also must be constantly looking for indications that their employees may be stealing from the company from within for personal gain. Whether they’re dissatisfied, greedy or just plain bored, these workers who commit fraud may be able to get away with their misdeeds for quite a while. That’s because these criminals hide in plain sight. In a lot of cases, the criminals themselves are the ones tasked with protecting the sensitive data and systems they abuse.
There are multiple ways employees can commit fraud and damage a company from the inside. One of the most prevalent ways fraud happens is when employees alter company records or orders to company resources to themselves. These employees might adjust payroll records to get paid for hours they did not work; they may falsify accounts payable to counterfeit payments to vendors, or they may simply steal assets and take them home at the end of the day. Another frequent type of fraud includes intellectual property fraud, in which employees may try to steal delicate information or pass counterfeit items as the real thing. Another example is corruption, in which employees may try to manipulate vendors to gain advantages in exchange for special treatment.
The effects of fraud can be extremely overwhelming for a business, there are actions businesses can take to shield themselves and block prevalent types of fraud that could take place within their companies. For example, companies can protect themselves against fraud by building a workplace culture that concentrates on employee satisfaction and collaboration, which can limit the feelings of unappreciation that drive many to commit fraud. Dividing up major tasks such as managing payrolls and accounts payable between employees also decreases the possibility that an employee will try to get away with something. Employers also need to set clear-cut expectations for employee conduct and ensure that they are communicated clearly and are understood by all employees. Simply by discussing workplace fraud, lets employees know that no type of fraud is allowed and sends a powerful message.
The accompanying guide includes more facts about general forms of fraud and some of the actions employers can take to oppose them. Your business has enough to worry about with your competition, so don’t let internal threats tear your business apart from the inside. Preventing fraud in the business starts with the attitude of the employees. Create a strong company culture that stands against fraud, while also cultivating a friendly environment that thrives on teamwork.
