How can I protect my business from employee theft and fraud?
Posted By: On behalf of J. Kevin Stockstill, Attorney At Law // On:
If you are the owner or manager of a business, you should be aware that employee theft, fraud and other misdeeds are a common problem. These crimes can cause you significant losses and may take many forms including:
You can help prevent these misdeeds and the related losses by being vigilant and taking a number of proactive steps such as the following.
- Look for warning signs of theft in your employees, such as a sudden willingness to work overtime; lifestyles well above salary levels; drug and alcohol abuse; objections to procedural changes involving finances, inventory or supply matters.
- Supervise your employees more closely across the board.
- Use purchase orders and always verify incoming orders.
- Control cash receipts by using serially pre-numbered sales slips and conducting weekly audits.
- Make unannounced internal audits and have a yearly audit done by an outside firm.
- Strengthen computer security measures and restrict access to computer terminals and records.
- Closely track all business checks and lock blank checks (and signature machines) in a secure place.
- Install security cameras or other devices to monitor merchandise or inventory.
- Monitor accounts receivable closely. Make mail opening and posting separate functions, and always stamp checks for deposit only.
- Provide an easy way for employees to report theft or fraud by coworkers.