PREVENTING FRAUD IN THE WORKPLACE

Over the past couple of years, the public’s attention has been captured by cases of corporate fraud involving very large, publicly traded business. E.g. Pension funds.

However, small and medium sized companies can be targets of fraud and deception too. They also suffer a great share of fraud losses.

Examples:

i. A Pharmacists had to close down her business because she could not get trusted staff. The members of  staff she was getting were either caught for goods theft of cash theft.

ii. In another case that was narrated to me, the owner of a small restaurant discovered

What is Fraud?

In our society today, a different value system is gradually emerging. Sadly, some employees do not see anything wrong in defrauding their employers and will even justify it.

Definition states that it is an act of deception intended for personal gain or to cause a loss to another party. E.g. using office resources for personal use. Such as phone calls, stationary, colluding with supplies, falsifying receipts, taking goods etc.

It is really disheartening because employees are actually an organisations greatest resource, but , but some employees do not seem to realise this.

Under the right conditions, your employees themselves should be an excellent deterrents against the act of fraud, but as this is not always the case you as the business owner or employer have to put in your personal measures, 3 of which I will share below.

1. Check employee References:

Some employers are in such a rush to fill a position, they look at a CV, then say start!! Whereas, when hiring new employees, employers must first check references, perform background check, that include employment, criminal history etc.

From WAEC you can purchase a scratch card and authenticate results as stated in the CV.

THE BENEFIT FAR OUTWEIGHS THE COST

2.  Put Internal Controls in Place: 
Put in place the procedures that must be followed and the policies that must be adhered to and this must start from the peak position to the least. Management should set a good example. If a manger is seen using company funds for personal use, what would you expect of the members of staff?

It is not do as I say, but do as I do!

How are sensitive documents kept? Who sees or has access to them. Do not be careless! You must scrutinize, monitor and have checks and balances!

3. Sound Accounting Principles: 
Put proper accounting records in place to ensure that transactions are properly recorded! I.T. has simplified this.

CONCLUSION

Consider regular audits as a way of preventing fraud in your workplace. It ensures that all book keeping related staff keep things honest because they cannot be sure of what documents the auditor may request to review. (Payroll,  Inventory records, accounting books, asset registers etc.) Adaora Ayoade
MD/CEO
EZ37 Solutions Ltd
... consistently adding value