Regardless of size, all organizations are vulnerable to workplace fraud. Businesses lose huge sums of money each year to fraud committed by their employees. Here are some crucial tips an organization can take to help prevent employee fraud:
- Establish a segregation of duties policy. Segregate job duties so different employees reconcile bank accounts, write checks and deposit money.
- Establish stringent policies for accessing company assets, such as business inventory. If inventory starts disappearing, you will have a list of candidates for the theft.
- Conduct background checks on employees before they join the company. You can likely identify potential culprits even before they join your organization.
- Regularly inspect the legitimacy of the vendor list and seek bids every three years from existing and new vendors.
- Try to gauge employee satisfaction regularly. Keep your eyes and ears open, and employ formal survey tools to get a sense of how your employees feel about working for the company.
- Work with insurance professionals to discuss anti-fraud measures and the appropriate insurance coverage for your organization. If you need help determining what insurance coverage you need, give us a call at (516) 431-9100. We’ll guide you in the right direction!