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10 Ways To Reduce The Risk Of Employee Fraud Within Your Corporation (Part 2)

September 17, 2015 by  
Filed under Blog

Billions of dollars and a chunk of revenue are being slashed from private organizations on account of business fraud, insurance fraud and corporate theft. In the first half of our blog, 10 Ways To Reduce The Risk Of Employee Fraud Within Your Corporation (Part 1), we focused on 5 ways that employers can rid themselves of this plague that is threatening to cripple small businesses and large corporations alike.

In part 2 of our blog, we focus on the next 5. Without further ado, let’s begin:

6.    Have Clear Reporting Lines

Small businesses generally operate in a decentralized business structure, or one with flatter hierarchies. While there is nothing with this type of business structure, it may usually result in informal lines of communication and ultimately lack of reporting. You have little knowledge of what’s going on in your own business. It’s time to minimize that. Have clear lines of communication: who reports to whom; and how. Streamline the communication within your organization.


7.    Create & Maintain A Financial Fortress

Finance: that’s where most of the fraudulent activities are likely to occur. Data theft is another concern, of course, which also ultimately, results in financial losses. Embezzlement and money laundering are some of the most financial crimes in organizations. Make sure to develop a system where you do not assign undue power to a single person. Distribute the responsibilities such as signatories and access to bank accounts, etc.

8.    Investigate Thefts Immediately – No Matter How Small!

In certain cases, companies fail to recognize the true magnitude and threat of corporate theft. Small thefts go unnoticed, giving rise to bigger attempts. Business leaders and managers must develop policies and control systems that nip the theft in the bud, rather than allowing it to proliferate through the organization. Run a theft investigation when necessary.

9.    Have Private Investigative Services On Board

In case of dire emergency, crisis situation, it is absolutely imperative that businesses have on board a private investigative services that specialize in corporate investigations related to employee background, corporate services, undercover operations, FMLA investigations, theft investigations and much more.

10.  Perform Regular Internal & External Audits

While policies are being enforced, control and checks must be conducted regularly to ensure 100% implementation. Revisit the strategies, policies and guidelines. Are there any discrepancies? Is there a need to reevaluate and make changes? Have another party come in and review the business process. Chances are while you miss out on a vital piece of security issue, they may fill in the gap.

Looking to start an investigation today? National SIU offers you corporate investigative solutions that helps identify the perpetrator with conclusive evidence, focus on recovery of your business and assist in the criminal and civil actions. We are closely connected with local, state, and federal agencies to ensure that an example is made so that similar thefts will not occur in the future.

Call us toll-free at 800-960-NSIU (6748) for a free consultation with an NSIU investigator.


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