Don’t ignore business fraud. That’s a rallying cry which should serve as a billboard above the company cash register. Business cheating or fraud takes place in every facet of life. There is no limit or boundaries to cheating. Fraud or cheating can be found in a small business located in a rural community as well as in a large non-profit organization based in a large metropolitan city. The criminal also comes in all shapes and sizes. There is no specific job description or age range for a deceitful and/or distressed employee.
Losses from Cheating
There’s no limit as to how much money a business can lose from cheating. The small business owner/manager may discover theft in the early stages. Or, it may be months or years before the small business owner/manager finds out. The culprits, businesses, locations, and crimes may be different, but the narratives of deceit remain consistent.
In many cases, the cheating is brought to light by chance. Also, the criminal is someone the small business owner/manager would least suspect – the respected, longtime, and devoted staff member. A large firm might have the resources to absorb a substantial financial loss because of stealing. However, that’s not the case for a small business. Business cheating could ultimately put a small business out of business altogether!
Remain Alert
Cheating or stealing by employees is not a novel problem. This age-old issue will probably never go away. Therefore, in order to catch fraud before it blossoms, every business, large or small, needs to keep a watchful eye over all business matters. An employee, financially desperate or unhappy with management decisions, may resort to stealing from his or her employer.
So, how does a business avoid becoming a victim of fraud? Here are a few items every business should focus on:
- Be aware of various hazards.
- Stay attentive to employees’ actions.
- Put into action an essential prevention plan.
Comprehending Potential Problems
Every business, not matter the size, can feature potential hot spots for fraud. However, some businesses are more susceptible to employee cheating than others. Therefore, businesses need to be vigilant in assessing its operations to determine what areas could lead to potential employee thefts or deceitful acts. A basic chart highlighting potential fraud “hot spots” could assist the small business owner/manager in focusing on those areas.
A checks and balances fraud prevention program may prove to be the ticket to discourage employee stealing. Once the areas for fraud are identified, the business should compare the costs connected in preventing fraud with the potential monies it stands to lose if the fraud takes place.
Keen Eye on Employees
Keeping an eye on employees doesn’t suggest a free ticket to micromanagement or meddling into personal matters. In fact, it signifies that management must be attentive to how the staff is doing its work and if there are known personal matters such as financial problems or family difficulties. Employers should consider these cautionary signals as potential opportunities for generally outstanding/reliable employees to participate in a possible deceitful/illegal action.
Enact Needed Rules
Enacting needed rules and then making sure employees follow those measures is vital in preventing fraud from occurring. In the long run, it’s better for a business to prevent fraud before it even happens. That’s a better strategy than apprehending the employee after the fraud and then trying to recapture the stolen money or funds. Developing and implementing the necessary rules to prevent fraud ultimately saves time and money for the business.
Pulling Everything Together
Fraud can strike a business in many different areas. Therefore, having a comprehensive fraud prevention plan is the best antidote for a business. Vigilance regarding potential fraud is just as important as having an employee handbook. Businesses should never employ a false sense of security regarding fraud. The bottom line for every business is simple…don’t ignore business fraud.
