No Result
View All Result
SUBSCRIBE | NO FEES, NO PAYWALLS
MANAGE MY SUBSCRIPTION
NEWSLETTER
Corporate Compliance Insights
  • Home
  • About
    • About CCI
    • Writing for CCI
    • Career Connection
    • NEW: CCI Press – Book Publishing
    • Advertise With Us
  • Explore Topics
    • See All Articles
    • Compliance
    • Ethics
    • Risk
    • FCPA
    • Governance
    • Fraud
    • Internal Audit
    • HR Compliance
    • Cybersecurity
    • Data Privacy
    • Financial Services
    • Well-Being at Work
    • Leadership and Career
    • Opinion
  • Vendor News
  • Events
    • Calendar
    • Submit an Event
  • Library
    • Download Whitepapers & Reports
    • Download eBooks
    • New: Living Your Best Compliance Life by Mary Shirley
    • New: Ethics and Compliance for Humans by Adam Balfour
    • 2021: Raise Your Game, Not Your Voice by Lentini-Walker & Tschida
    • CCI Press & Compliance Bookshelf
  • Podcasts
  • Videos
    • On-Demand Webinars: Earn CEUs
  • Subscribe
  • Home
  • About
    • About CCI
    • Writing for CCI
    • Career Connection
    • NEW: CCI Press – Book Publishing
    • Advertise With Us
  • Explore Topics
    • See All Articles
    • Compliance
    • Ethics
    • Risk
    • FCPA
    • Governance
    • Fraud
    • Internal Audit
    • HR Compliance
    • Cybersecurity
    • Data Privacy
    • Financial Services
    • Well-Being at Work
    • Leadership and Career
    • Opinion
  • Vendor News
  • Events
    • Calendar
    • Submit an Event
  • Library
    • Download Whitepapers & Reports
    • Download eBooks
    • New: Living Your Best Compliance Life by Mary Shirley
    • New: Ethics and Compliance for Humans by Adam Balfour
    • 2021: Raise Your Game, Not Your Voice by Lentini-Walker & Tschida
    • CCI Press & Compliance Bookshelf
  • Podcasts
  • Videos
    • On-Demand Webinars: Earn CEUs
  • Subscribe
No Result
View All Result
Corporate Compliance Insights
Home Featured

Best Practices to Reduce the Risk of Employee Fraud

by Eric Czerwonka
March 21, 2018
in Featured, Fraud
man in shadows holding hundred dollar bills

5 Steps to Prevent Loss

Employee theft costs U.S. businesses an estimated $50 billion a year. For companies today, safeguarding against employee fraud should be a top priority. In this article we’ll explore a few ways that businesses can take steps to help protect themselves from fraud.

Looking to keep your company safe?

For any company with employees, preventing employee fraud is an issue that should be at the top of the list when it comes to safeguarding the business.

With employee theft costing U.S. businesses $50 billion a year, it’s easy to see why fraud prevention is so important.

The truth is, employee theft comes in many different forms, and there simply isn’t a one-size-fits-all solution when it comes to preventing fraud. From outright embezzlement to skimming extra hours, any form of employee fraud is serious, and all instances can cost your business and negatively impact your bottom line.

While fraud can be devastating, there are ways to go about preventing and reducing the risk to your company. With this in mind, here’s a look at some steps you can take to help prevent employee fraud.

Have Policies in Place

First things first: you should ensure you have proper policies in place.

Your policies should outline the various forms of fraud and time theft, as well as your company’s stance on these activities. It should also mention the checks that will be performed, as well as what steps will be taken should fraud or theft be found. You may also want to consider writing up a code of conduct to give to each employee at the time of hiring, outlining what is expected and what isn’t tolerated in the workplace. Educating your employees is the first step to preventing employee fraud.

Communicate Clearly

You should also make it part of your mission to be open with your employees about your stance on fraud and theft and ensure they understand you have no tolerance for theft in the workplace. While this should be outlined when you first hire your employee, you should take every effort to ensure that your views on this are not hidden. When employees are aware that you take this seriously, they’ll be much less likely to try it.

Perform Regular Informal Audits

Routine and regular audits performed by a third-party company or someone outside of your own company can be a great way to spot potential fraud or theft that could be taking place inside your company. While it is important to perform these audits regularly, it’s also important to be informal about when you perform them. Making unannounced audits can help to prevent employees from covering things up beforehand.

Consider Enabling Anonymous Tips

One of the best ways to find out what is really going on with your employees is from those who they are in close contact with. While many people are leery about turning their fellow co-worker in, you can make it possible for your employees to provide anonymous tips or insight to theft. While this is a highly effective way to stop fraud in its tracks, it’s also important to ensure that each employee who is suspected of fraud is thoroughly investigated. Always avoid rushing to pass judgment until you’ve gathered all the facts.

Update Security and Systems

Having outdated employee time-tracking systems or security systems is another way to invite theft and fraud into your company. Remember, not all theft is as obvious as walking out the front door with a bag of cash. Often fraud is committed internally, through computers with online banking or other internal systems. Even systems such as your time-tracking software can be an avenue for fraud if they’re not up-to-date.

If you suspect fraud, theft or any other illegal activity within your company, it’s important to take steps to address the issue right away. If you’re uncertain about which course of action to take, it’s best to contact an attorney to ensure the proper steps are taken. You should also be careful not to start a disciplinary process based on a gut feeling alone; instead, make sure you have all the facts in place and evidence needed before taking action.


Previous Post

Third-Party Due Diligence Requirements for Financial Institutions

Next Post

TRACE: Offsets: What on Earth?

Eric Czerwonka

Eric Czerwonka

Eric Czerwonka is an entrepreneur, an author at Studyclerk and co-founder of Buddy Punch, an employee time-tracking software company founded in 2013 that provides employee management solutions for any small and large companies alike — anyone with employees from startups right to corporations and anyone with a remote team to manage.
 

Related Posts

labrador transparency awards graphic

PayPal, Verizon Listed Among Transparency Award Winners

by Corporate Compliance Insights
September 21, 2023

PayPal, Target and Verizon were among the S&P 250 companies honored for the efficacy of their corporate disclosure documents with...

collage of hands texting

From Inquiry to Response: What to Do When Regulators Come Knocking for Text Messages

by Lauren Tringali and Brian Corbin
September 20, 2023

Financial institutions have been hit with billions of dollars’ worth of fines in the past couple of years for failing...

british bank note on clothesline

Upcoming UK Reforms: Tackling AML Will Require Consolidation, Not Further Fragmentation

by Simon Luke
September 20, 2023

With a series of proposed reforms on the table to improve the effectiveness of the UK’s anti-money laundering and counter-terrorism...

Women-working-machines-American-Woolen-Company-Boston-1912

Stuck in the Middle? Succeeding in the Industrial Sustainability Revolution Requires Root & Branch Reform

by Stuart McLachlan and Dean Sanders
September 19, 2023

Stuart McLachlan and Dean Sanders, authors of “The Adventure of Sustainable Performance: Beyond ESG Compliance to Leadership in the New...

Next Post
TRACE: Offsets: What on Earth?

TRACE: Offsets: What on Earth?

Available SQ
New call-to-action

Jump to a Topic

AML Anti-Bribery Anti-Corruption Artificial Intelligence (AI) Automation Banking Board of Directors Board Risk Oversight Business Continuity Planning California Consumer Privacy Act (CCPA) Communications Management Corporate Culture COVID-19 Cryptocurrency Culture of Ethics Cybercrime Cyber Risk Data Analytics Data Breach Data Governance DOJ Download Due Diligence Enterprise Risk Management (ERM) ESG FCPA Enforcement Actions Financial Crime Financial Crimes Enforcement Network (FinCEN) GDPR HIPAA Know Your Customer (KYC) Machine Learning Monitoring RegTech Reputation Risk Risk Assessment Sanctions SEC Social Media Risk Supply Chain Technology Third Party Risk Management Tone at the Top Training Whistleblowing
No Result
View All Result

Privacy Policy

Founded in 2010, CCI is the web’s premier global independent news source for compliance, ethics, risk and information security. 

Got a news tip? Get in touch. Want a weekly round-up in your inbox? Sign up for free. No subscription fees, no paywalls. 

Follow Us

Browse Topics:

  • CCI Press
  • Compliance
  • Compliance Podcasts
  • Cybersecurity
  • Data Privacy
  • eBooks Published by CCI
  • Ethics
  • FCPA
  • Featured
  • Financial Services
  • Fraud
  • Governance
  • GRC Vendor News
  • HR Compliance
  • Internal Audit
  • Leadership and Career
  • On Demand Webinars
  • Opinion
  • Resource Library
  • Risk
  • Uncategorized
  • Videos
  • Webinars
  • Well-Being
  • Whitepapers

© 2023 Corporate Compliance Insights

No Result
View All Result
  • Home
  • About
    • About CCI
    • Writing for CCI
    • Career Connection
    • NEW: CCI Press – Book Publishing
    • Advertise With Us
  • Explore Topics
    • See All Articles
    • Compliance
    • Ethics
    • Risk
    • FCPA
    • Governance
    • Fraud
    • Internal Audit
    • HR Compliance
    • Cybersecurity
    • Data Privacy
    • Financial Services
    • Well-Being at Work
    • Leadership and Career
    • Opinion
  • Vendor News
  • Events
    • Calendar
    • Submit an Event
  • Library
    • Download Whitepapers & Reports
    • Download eBooks
    • New: Living Your Best Compliance Life by Mary Shirley
    • New: Ethics and Compliance for Humans by Adam Balfour
    • 2021: Raise Your Game, Not Your Voice by Lentini-Walker & Tschida
    • CCI Press & Compliance Bookshelf
  • Podcasts
  • Videos
    • On-Demand Webinars: Earn CEUs
  • Subscribe

© 2023 Corporate Compliance Insights

Welcome to CCI. This site uses cookies. Please click OK to accept. Privacy Policy
Cookie settingsACCEPT
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT