Tips for Preventing Employee Theft and Fraud

Explore these tips for preventing employee theft and fraud to ensure you protect your business from potential internal attacks.
Run Background Checks on New Employees
When you bring new employees on, you want to trust them as members of the team, but besides the little time spent with them during an interview, you actually know little about them. Therefore, you should always run a background check on potential employees. From their criminal history, credit score, and other information revealed, you can immediately become aware of any red flags present.
This security measure should act as a filter to catch any potential issues. If there are any discrepancies in their background search, you should address it with them before making any final decisions.
Install Cameras in the Workspace
Crimes are often one of opportunity. An employee might feel more inclined to steal if they know no one is watching, which is why security cameras aren’t just for your customers. Many companies will only install cameras by the entrances, exits, and areas where clients congregate. Still, you should install them in any space with a high number of company assets in one place.
For camera surveillance in manufacturing, you should monitor the areas where staff handles the merchandise. If you’re in an office space, you should have eyes over the sea of cubicles, or anywhere that sensitive documents are stored. This way, no theft goes unnoticed.
Enforce a One Strike Policy
It happens the most in the food industry, where small amounts of shrink are forgiven or ignored, but if behavior like this is left unchecked, it can fester into thousands of lost dollars. There must be consequences for actions, and any employee found stealing should be terminated immediately. It would be best if you only considered turning them over to authorities on a by-case decision.
So, regardless of size or culture, every company should maintain a one-strike policy when it pertains to theft or fraud. For businesses to work in good faith with their staff, they need to know it is a two-way street of trust.
Establish a Reporting System
Regardless of promises of protection made to staff, there will always be a culture of employees not informing their peers or superiors. To avoid this, you should establish an anonymous way for employees to report a co-worker if they see something wrong. You can run this program in conjunction with HR or a third party for an added layer of protection.
Conduct a Surprise Audit
Also, to ensure that the accounting department is above board, you should occasionally have third-party firms conduct a surprise audit of your finances. This way, you’ll have confirmation that all paperwork and budgets are being tracked correctly. With these tips for preventing employee theft and fraud, you can better protect your company’s assets from internal exposure.