Every business owner wants to lead the business to reach the top of the success but fraud is a barrier to a success of the business. Fraud provides great loss to the business and sometimes companies need to shut down the business and start from the scratch and you need to be aware of it.
Employee fraud is also a problem occurred in different areas and faced by the organization, every organization needs to believe in their employees as they are the assets of the organization and development of organization depends upon working of employees but still, a variety of reasons are available that employees commit fraud in several ways.
Let’s have deep look what kind of frauds should employees commit?
Employees can cause fraud to the company in three main forms including asset misappropriation, corruption, and financial statement. The asset misappropriation is the type where most employees commit fraud as employees steal or exploits its organization resources for personal benefits.
Corruption is what where employees made a scheme of misstating information like hidden liabilities or revenues to the company official financial report. The financial statement is associated as the employees violate their duty to the employer due to conflict of interest and extortion.
How employee’s fraud can be prevented?
The employer can reduce the staff fraud as a variety of solutions is available as it is important to stop fraud for a development of the organization.
- Know your employees:
You need to know your employees as observing and listening to the employees can help you identify potential fraud risk as attitude change of the employee is a clue towards the employee fraud. You need to observe the behavior of the employees as minimizing the loss of the company will make the organization better place.
- Make employees set up reporting system:
You will need to develop the consequences associated with the fraud for the organization as it helps you to aware the employees and the staff that is planning to commit fraud will know that management is looking towards the employees and will be deterred by this.
- Monitor vacation balances:
You can also take a step to rotate the job type of the employees as it will help you to stop the fraud and employees as if the employee is out of office or his job is to rotate the second employee will look towards his activities and if he is committing fraud then he will be captured easily.
- Hire experts:
You also need to hire the certified fraud detectors to detect if any employee is committing fraud with the company or to establish the policies for the company and can provide a wide range of services for the audits of the organization.
You need to implement all the above mention activities for the development of the organization as it is important to detect the fraud and prevent the next employees from committing frauds and it only is happened if an organization has developed good policies and have access towards detecting the fraud of the organization.