Disbursement fraud schemes are by far the most common I have seen in my 30-year career. You probably didn’t know that you can take a few easy steps, investing just minutes, to mitigate losses from this type of fraud.
Fictitious vendor fraud is a rather common scheme. Unfortunately, it is more difficult to detect than just a quick scan of the payees or the check amounts. Spending a little time implementing a thorough vendor setup program is a great first step in preventing fictitious payment fraud.
Every successful organization follows the actions of its leadership. What happens when others in the business see unethical behavior—what are they to think? It’s a simple case of “monkey see, monkey do.” It is not uncommon for an employee to emulate what they see, and that extends to corporate behavior.
Of all the fraud prevention tools and techniques available to companies, my personal favorite is the fraud risk assessment. It is not the most cost-effective tactic, but it will yield the greatest results.
When it comes to preventing fraud and embezzlement, the element of surprise is a rarely used preemptive tactical advantage. Today, business executives need to utilize every advantage in their fraud prevention arsenal in the never-ending fight to prevent employee misappropriations.
National statistics and our own firsthand experience indicate that internal fraud and employee embezzlement are not going away anytime soon. So what’s the easiest step that a company or organization can implement to combat the hidden threat of employee misappropriation, theft and fraud? A written corporate fraud policy.
Fraud hotlines are one of the most cost-effective fraud prevention and reporting tools.
While many of today’s employees are emboldened to at minimum “test” stealing from your business, businesses and organizations must be more proactive than ever to protect their cash and other assets.The best way to prevent fraud is to stop the problem before it starts.