Fraud is a problem that lurks wherever you go. There are just too many people who find it easier to make money this way. Sadly, it’s a threat that you can’t see, and often plays on your emotional level which makes it difficult to trace.
Fraud however is complex in that it preys on so many levels such as bribery, stealing secrets, petty thievery, overpricing, embellishment of expenses or sales, and check or credit card fraud.
There are ways to avoid being a victim of fraud, even in your own turf. Here are some sound financial advise:
Have Internal Controls
Everyone is a potential victim to temptation, which is the root cause of fraud. Even your most honest employee can be a target. Setting up internal controls is just business, and everyone must respect it. Start with limited access to vital information, and keep changing your password or access codes. Also, this limited access does not mean only you rely on only one person.
You should also set accountabilities which means every person should be responsible for one aspect of your business finances so that there is a system of check and balances.
Go Through Every Applicant With A Fine-Toothed Comb
When hiring, don’t just base your decision on the CV and interview. Get references, and police clearances. You might as well know from the start whether or not you can trust a person from past work experiences. If you can afford it, make them go through psychological profiling which is a service you can contract on a case to case basis.
Hire External Auditors
This should be done annually, but you can schedule it twice a year if you will feel more comfortable. People working for you will think twice if they know someone can come in unscheduled to audit them.