Five key steps companies can take to help fight fraud.
Currently, I am in the midst of completing my required accounting continuing education courses. There are, of course, the standards: Individual Income Tax Updates, Business Tax Updates, Accounting Updates, and so forth. Also, sprinkled in are the courses I find fascinating. Currently, I’m really interested in any classes focusing on AI and how to use it effectively and fraud and how people commit it. During one of those fraud classes, the instructor shared five easy steps any employer can take to help fight fraud. They won’t solve the problem of fraud, but they do help companies raise the bar a little, making it harder for others to commit fraud against them.
- Implement some kind of fraud reporting mechanism. This is typically a more formal process, like a compliance or audit program.
- Create a tip line. A tip line is typically informal and anonymous, allowing people to call or email information related to fraud.
- Implement mandatory job rotation and required vacation.
- Require background checks. It seems obvious, but many people skip this important part of the hiring process.
- Regular online review of bank activity. Simply logging into the company bank account and scanning transactions on a regular basis keeps the owner involved and aware of what is going on in the company.
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