What You Should Know About Employee Fraud

What You Should Know About Employee Fraud

Hoping you hired the right team isn’t enough – tackle employee fraud before it starts. 

No business owners want to believe that they are ever at risk of employee fraud. Each owner would like to think that they treat their team well and that no member would ever think about committing fraud. Unfortunately, this isn’t always the case. Small businesses should be on guard against all risks, and employee fraud is one of those dangers that can happen to any company.

Small businesses can help to protect themselves from fraud with these tips.

Perform Background Checks

Before hiring someone on the spot in their first interview, take the time to research their background. Call previous employers, their references, and always do a background check. If something doesn’t check out, you’ll be thankful that you put in the effort before something happens to your business.

Keep an Eye on Employee Behavior

Unless you’re with your team, you won’t know if something has happened to their financial situation or if they’re looking at the cash drawer all the time. Let employees know you are keeping an eye on things around the company by walking around and talking to them.

Encourage Strong Ethics

48 percent of small businesses have a Code of Conduct – a simple anti-fraud tool. Encourage employees to come to you with any issues and inspire trust in your team.

Keep Track of Cash

If your business handles money, ensure that all slips, records, and reports are noted about profits and losses at the end of each day. If small amounts of cash are missing, it may be worth it to do some digging.

Delegate Financial Responsibilities

No single employee should handle everything financial. For example, the employee who writes the checks should not be the employee who reconciles the bank statement.

So that you can focus on your team, let us focus on covering your hard-to-insure risks. To learn more about how to protect your business, visit the independent insurance professionals, Perry & Carroll in Elmira and neighboring cities in New York.

Give us your questions, feedback and opinions on this topic.