Fraud Prevention in the Workplace
Fraud and crime are not limited to the streets; they are also present in the workplace. Learn how you can prevent fraud, theft and crime in your workplace by following preventive measures.
The scope of workplace fraud is broad. It includes petty thieving, such as employees who would "borrow" paper supplies with no intention of returning or reimbursing them; to heavier crimes such as massive amounts of cash magically disappearing from the company books.
It is no wonder that employee background check and employer background check is becoming more and more critical for any business institution.
Although companies cannot detect most of infractions, there are ways to prevent these fraudulent activities in the office. Here are some:
1. Companies with a good screening process usually get efficient, trustworthy workers. Background checks are quite a common practice in every organization. Before finally letting anyone join the company, HR may conduct the following:
* personal background checks
* employment checks
* credit history check
* criminal background check
* employment verification
* previous work verification
* achievement and credential verification
Although family background does not say much about the individual itself, it gives the company a general idea on the applicant's upbringing and beliefs. Employment history reveals more: someone who often transfers from job to job could indicate an underlying problem.
That's why potential employers should always try to contact the applicant's former employers for history information.
Depending on the position, a poor credit history could be a red flag indicator, especially for an applicant who will hold an administrative position once hired by the company. Most importantly, an applicant with criminal history should raise issues for obvious reasons. These are basic defenses a company can take during the initial stages of employment.
2. Companies with strong internal control reduce opportunities for fraudulent activities. Internal controls such as having dual signatories for cash and high-valued inventoriable item; segregation of incompatible duties; having effective password access controls and placing cameras in strategic company premises would go a long way.
These preventive measures deter both internal and external criminal acts. Unauthorized individuals will have a hard time opening vaults or withdrawing money without the proper access, electronic or otherwise.
3. Companies with high regard for good governance are more likely to experience fewer misdemeanors from their employees. When employees are treated with respect and proper accord, they synergize with the company well, make the job personal and help the company grow
Companies that deliver promises to employees, customers, and suppliers usually get high regard from the organization and the community, thereby lessening foul intentions against the company.
These are just a few preventive ways to help companies avoid fraudulent acts in their organization. Information, prevention and awareness are the best tools a company can have to ensure a safe, crime and trouble free business and workplace environment.
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