101: Employee Theft
It isn’t always a new employee who pilfers supplies, fraudulently diverts funds or abuses sick time. Fraud prevention experts cite the 10-10-80 rule, which states that 10 percent of people will never steal under any circumstance; 10 percent will steal whenever they see an opportunity; and 80 percent may steal depending on their perception of the circumstances (“I’m underpaid, in debt, and have done so much for this company”).
Here are some pointers to make your workplace as fraud-repellent as possible:
Maintain an element of surprise. Audits should be irregularly scheduled to keep employees on their toes, says an article on BusinessKnowhow.com. Once a year, arrange for a third party to examine your books.
“Also insist that your bookkeeper or any employee who has access to monies take a yearly vacation so you can examine their records,” the article says.
Talk then listen. Make it perfectly clear to employees that fraud and theft will not be tolerated and explain how it affects the company’s bottom line and salaries.
“Employees should receive annual training on these topics and on the definition of what’s considered fraudulent behavior, and sign an acknowledgement each time,” states an article on the website for i-Sight, a Canada-based fraud detection firm.
Outline the consequences for fraud and develop policies that promote accountability. Create a way for employees to report fraud anonymously and listen to those tips, no matter how far-fetched. Culprits are often star employees. Tips from employees are the No. 1 way to identify crime in the workplace, according to i-Sight.
A great interview is not enough. Pay attention to whom you invite to join your staff in the first place. Background checks are about more than criminal history, says Scott Gane of Texas-based Initial Security in an Inc. magazine article. Run a credit check.
“If there are repossessions or multiple accounts closed, it shows there may be a need for monetary gain,” he says.
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