We haven’t seen any blaring headlines lately about workplace fraud, but that doesn’t mean it’s not happening. In 2006, the Association of Certified Fraud Examiners (ACFE) reported 1134 cases.
Small companies like yours are often more vulnerable to workplace fraud because of limited resources and a greater inability to absorb losses, according to Robert Kardell, managing consultant with BKD, LLP Forensics & Dispute Consulting in Omaha, Neb. But preventing fraud is easier and less expensive then actually detecting it. Here are three quick tips from Kardell you can implement for fraud protection.
- Establish an anonymous hotline or other reporting system. Not only are hotlines inexpensive, but were the most effective of five methods tested by the ACFE.
- Conduct a surprise audit. These can be limited in scope, and therefore cost-effective for small companies. These audits can cut losses in half.
- Educate your employees about fraud, fraud awareness and ethics. In most companies, management can’t review every transaction; the next best thing is having other employees be on the lookout for fraud.
Do you have any additional suggestions for fighting workplace fraud? Leave me a comment.