Tips for Preventing Fraud in Your Business

Billions of euros are lost every year in businesses due to employee fraud. While you may rarely hear of small companies being the victim of employee fraud, it’s very common. This is usually due to a lack of awareness or a false sense of security. We have compiled a couple of tips to help with fraud prevention.

1. Thoroughly screen applicants before hiring them

The best way to prevent fraud is to hire the right employees. Before hiring somebody, it is advised to perform a background check on them. You should check their criminal history, civil history and if they have any violations on their drivers’ license. You should also verify the applicant’s education, past employment and references.

 

2. Lead by example

Creating a positive work culture is an excellent way of preventing fraud in your business. Ensure that staff in higher positions lead by example and act as role models. Placing an emphasis on honesty and integrity and abiding by company policies and procedures should encourage employees to do the same.

By setting clear standards from the start, employees will understand that there is a zero tolerance policy in place for employee theft.

3. Implement an anonymous theft reporting system

Every company should establish a system that makes it easy for employees, vendors and customers to anonymously report suspected fraudulent activities. Be sure employees understand what constitutes fraud and that all reports are treated confidentially and without reprisal.

 

If your looking for more advice on fraud prevention for your business or just want some general accounting advice, then contact Kilcoyne Accountants today. You can also find us on Facebook.

Click here to book your FREE consultation!

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