Fraud can happen in any organization, from restaurants and florists to warehouse operations and banking. And fraud can manifest in the form of misreporting expense reimbursements, outright theft of funds, or sensitive data breaches. Since no company is immune or risk-free of potentially fraudulent activity, you should always be looking for new ways to effectively prevent and mitigate concerns. Today, we’ll share fraud prevention steps worth exploring to reduce the risks of fraud within your business.
1. Knowing and Communicating with Your Employees
Every business expects (and hopes) to hire honest employees. But in today’s digital world, where fraud and non-compliant behaviors can happen anytime and anywhere, you can’t rely on gut instincts alone to onboard new staff. Run the background checks on those responsible for managing cash or company funds. Follow up with an applicant’s references and pull credit reports when applicable. And when you do hire your teams, get to know them and share your company’s values. New and veteran employees should all understand what behaviors you expect from them on the job, along with those behaviors your company won’t tolerate.
2. Improving Fraud Prevention Training
Don’t presume your employees know a fraudulent activity when they see it. Investigate your current training initiatives to make sure there are clearly defined guidelines for fraudulent activity and prevention measures. Coach your teams ongoing, too, so they are reminded to be aware of their workplace surroundings and online interactions. And provide them with concise reporting processes should they observe or encounter instances of fraudulent behaviors.
3. Fraud Prevention Reporting Channels
You might already have compliance and ethics policies in place governing other areas and behaviors. But every company should also have dedicated fraud prevention reporting processes and channels. Anyone working for or doing business with your company should be able to spot fraudulent activity when they see it and know precisely how to go about reporting it. An ethics hotline is a great resource and reporting channel worth implementing as part of your fraud prevention strategy.
4. Bring in the Experts If You’re Unsure
There are some fraudulent activities you know about and can be vigilant about monitoring. However, in today’s digital environment of data breaches, sensitive document sharing, and digital currency manipulation, it’s more challenging to stay on top of your company’s risks. Don’t hesitate to bring in a partner or digital expert to help. Improving your business’s online security and internal systems in a way that allows for better auditing and monitoring will ensure you stay ahead of potential violations. And if you’re interested in expert assistance with ethics and compliance or are ready to implement an ethics hotline, Ethical Advocate is just a phone call away.
Because fraud can negatively impact any company or organization, it’s important to keep these fraud prevention measures in mind. Performing routine audits, enforcing strict accounting and bookkeeping methods, and securing sensitive information are all part of a healthy fraud prevention effort. And for safe and anonymous reporting of suspicious activity, let Ethical Advocate demonstrate the countless benefits of an ethics hotline!