Staff’s fraudulence

Staff's fraudulence

Staff’s fraudulence

If your business is not so big and you don’t have much staff it does not mean that your employees are not trying to deceive you. Perhaps you cannot afford Economic Security Service but after the first signs that that you are being cheated you should carefully check all of the financial documents. Especially if your business used to flourish but eventually everything started falling apart without any external reasons which would be able to influence the decline in profits. It makes sense to start by checking the staff. It is likely that that’s exactly where all fraudulent actions come from. Scams may look like an ordinary embezzlement, theft or misappropriation of your property. Often these employees have a good reputation and abuse the trust. This fraud may even take the form of corruption, in other words, when your purchasing manager takes bribes from suppliers and so on.

It is also necessary to determine why such things are happening. It is not always the level of salary that affects employees’ actions. The reason can be not only a simple self-interest but also the actions of your competitors who are directly interested in your business failing.

You will need to outline the range of potential fraudsters. Two categories can be distinguished here: the staff that has direct access to funds and assets and employees that do not have such access but at the same time are burdened with some unbearable obligations. For example, they have huge debts or loans. Typically, this category includes employees dissatisfied with their wages. In addition, the employees who work for you for a long time are usually well aware of all vulnerable sides of the business and what is not being controlled properly and so on.

Statistics show that only 10% of all employees are perfectly willing to commit any misconduct for their personal gain. Another 10% will never agree to steal. The remaining 80% will not actively look for ways to steal, however, if any external circumstances push these people to commit a crime they will eventually give in. Therefore, a businessman has to carefully select the staff and try not to hire those people who are willing to do anything for the money. As for the rest of the staff, an employer has to create such conditions under which employees would not want to steal in order not to lose their jobs.

A businessman him/herself has to highlight weaknesses in their business and control the entire process to exclude inventory items from being lost at any stage of their usage. It requires a clear structure of the company to be put together and all the technological processes to be documented. This data will instantly allow you to determine how high the level of security should be and at what times it must be enhanced and so on.

But of course it is absolutely essential for a company to create such environment in which employees do not even think of stealing. This includes a system of incentives. Do not be afraid of bureaucracy in your company because it often helps in detecting fraud.

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