Profit is the reward of risk-taking however when it comes to fraud, it is better to be safe than sorry. It can prove to be fatal directly in the form of monetary or data loss as well as indirectly in the form of legal costs, fines as well as reputation damage. It is easier to prevent corporate fraud from taking over rather than fix your reputation and finances.
With the right plans and strategies in place, you can seamlessly prevent and combat corporate fraud. Here are a few strategies that you can follow to make sure you fight fraud in your organization in the right and effective way.
Be proactive in your approach
Do not take things smoothly and wait for the last minute to make sure you set this ball rolling. Chances are you may fall victim to a fraudster when you least expect it. So rather than sitting down and doing nothing, be proactive in your approach. It is important to establish as well as maintain internal controls that are specifically integrated to recognize, prevent, and detect fraud. Let your employees know about what is appropriate when using company technology. Also, make them aware of how they can handle company information.
Keep employees informed
Keep your employees updated about fraud risk assessment. Put policies in place that clearly define the expectation of privacy. Also, make monitoring network activity easy to understand. See that regular training on fraud as well as ethical behaviour in the workplace is established. Make sure a chain of command that deals with suspected fraudulent activity is set in place. This ensures your employees are well equipped to manage any kind of ethical dilemmas.
Keep an eye on your data
While in the past, this involved keeping a watch on transactional data so that you can proactively recognize anomalies that show you signs of fraud. Today, however, there are many ways in which fraud can be committed. This involves emailing company information and uploading sensitive data to the cloud. It also means saving sensitive information on a smartphone or sharing through social media. See that you protect your company’s information by making sure it is not shared outside of your business and that just authorised personnel have access to the information. Have monitoring technology that tells you when company data is leaving the office.
Put company policies stringently into force
After hiring employees, they should be offered information on confidentiality policies. Ensure employees sign and agree to it. If your existing employees did not sign this kind of agreement upon joining, you can implement these policies now and see that they consent to it. Should an employee violate company policy, let them know that there are going to be consequences. If the employee leaves the organization, see that they still follow agreed-upon nondisclosure terms.
Hire the appropriate type of people
The only way in which you can mitigate fraud risks is by preventing nefarious actors from obtaining access to your data. If they do not gain access to it, they cannot possibly steal it. To make sure this is possible, you need to painstakingly hire the right kind of people. Also, bust the myth that a former employee won’t share any valuable information. So, it is important that you pick up the phone and check those references.
Keep the corporate culture in check
With a favourable work environment, you can ensure employee theft and fraud can be prevented. You need to possess a clear organizational structure, fair employment practices as well as written policies. You can also have an open-door policy that offers a great fraud prevention system. This ensures it gives employees open lines of communication with management. It is important for business owners to set and lead by example. To do this, you need to hold every employee responsible for their actions, no matter what position they possess.
Other than this, you also need detection methods in place. Above all, make certain they are constantly updated at regular intervals. This ensures you are aware of and secured by the latest protection strategies. If you do happen to fall prey, see that you go in for the right corporate fraud investigation professionals to help you figure out how to go about with this process.