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.
Poor internal controls provide employees the opportunity to steal at the expense of your business. How much are you willing to lose as a result of an embezzlement?
There are several reasons people may use a debit card for regular expenses and a credit card for “extras.” However, when deciding which card to use, you should be aware of other differences.
The first step in discouraging employee theft is establishing a proper “tone at the top” in regard to ethical behavior. Next, consider implementing the following proactive steps to deter employee theft at your company before it becomes a problem.
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.
Imagine you get an enticing text message claiming that you’ve won a free vacation to the destination of your choice — all you have to do is click on the link you were sent. Clicking on the link causes you to play right into the hands of a cybercriminal seeking your sensitive information.
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.