WHEN IT COMES TO FRAUD IN THE WORKPLACE, WE ALL PAY THE PRICE

If you thought that fraud in the workplace was a "nickel and dime" kind of problem, consider this: according to the Association of Certified Fraud Examiners, American companies may be losing as much as $600 billion due to employee fraud.

Of course, you don't need to be a business owner to suffer. The cost of fraud can impact salaries and benefits. And, according to the U.S. Chamber of Commerce, 20% of all businesses fail due to internal theft and fraud. That means lost jobs for everyone.

Stopping fraud should be everybody's job.

Here Are Some Red Flags To Look For When Fighting Fraud...

• An employee who is always complaining and constantly breaking the rules.
• An employee who suddenly becomes a big spender showing off expensive purchases or giving gifts.
• Missing files or documents.
• Inaccurate records or a lack of spending and budget controls.
• Unexpected increases in transactions with certain vendors.
• Employees who are reluctant to take vacations.
• Lack of ethical leadership by management.
• A failure to produce timely reports.
• A lack of adequate safeguarding of key documents.
• A lack of documentation of business transactions.
• Poor security on physical assets and a failure to conduct regular inventories on these assets.

These are just some of the warning signs that fraud may be taking place. So, what can you do to help prevent fraud in your organization?

Here Are Safeguards You Can Take To Limit Fraud.

• First and foremost, management must set the tone for the entire organization, establish firm rules, and be ready to terminate and prosecute all employees who commit fraud.
• All new hires should be informed of company policy and, on an annual basis, all employees should sign a confirmation that they have read the rules and will abide by them.
• Always enforce vacation time - this can expose fraud and also serve as a deterrent.
• Divide up business responsibilities - for example, those who have access to cash should not be the same employees who balance accounts at the end of the day.
• Rotate job functions - this can limit the time available for fraud and serve as a deterrent.
• Conduct surprise audits, inspections and inventories.
• Encourage employees to report fraud - you may even want to consider the use of rewards.
• Be willing to help employees in need - programs that assist employees who may be experiencing tough times can deter crime and improve company morale.
• Be sure to keep complete and up-to-date records on all of your company's transactions, assets and inventories.
• Limit access to storage areas, lock-up valuables and other assets, and safeguard passwords, combinations, and keys.
• Consider the use of electronic security and surveillance systems.

We can also help. We offer a wide range of office security tools and the expertise to make them work for you.