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Protecting Your Business Against Corporate Fraud

6 March 2017

Alexis Garcia

Your company might have grown much more quickly than you expected. As it continues to grow, it's vital that you put in place anti-fraud measures that will protect the business and you personally. These measures can help you avoid losing money because of theft or legal problems and help you maintain your reputation in the industry. If anti-fraud measures are new to you, here are some ways to protect against fraud in your corporation.

Create a Manual for Employees

An easy way to make sure no one breaks the rules is to be clear that everyone understands what the guidelines and boundaries are. You might want to work with an attorney to draw up a comprehensive manual for your workers that outlines what activities are forbidden and what kind of action will be taken in the event that someone violates corporate policy. You might ask that new employees sign a statement saying that they were provided with a policy and indeed read it.

Improve Hiring Practices

When you first started out in business, you might have hired friends or worked with people without checking into their background too deeply because you were trying to get your products out there. However, in order to cut down on fraud, it's important that your vetting process is very good. You might want to verify education and other credentials or perform criminal background checks with fingerprint investigation.

Arrange for Anonymous Tips

Sometimes, one of your employees could observe behavior that they find inappropriate and suspicious. They might not feel comfortable approaching you in person for whatever reason, and that can delay your knowledge of any problems. For that reason, it's a smart idea to arrange some kind of system for anonymous information. You could set up an email address dedicated to tips that can be passed on anonymously, for example. A tips phone hotline is another possibility.

Have Surprise Checks and Audits

Surprise audits can be a way to ensure that everything is going well or to catch a bad actor without allowing them to do too much damage. For instance, you might show up at the warehouse without announcing yourself beforehand and ask for a quick inventory to be done to make sure no items are missing. You might request expense reports before the end of the quarter so you and your team can go through them to look for any anomalies.

With these steps, you might be able to lessen the likelihood that someone will commit fraud in your company and be able to catch them quickly if they do. You may want to retain a lawyer with experience in these matters so that they can provide more specific guidance. Visit websites like kkc.com to learn more.

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