Even though you may have thought of it hypothetically speaking, it is still shocking when you realise that your friend or trusted employee has stolen from you. While you have to work through your emotions of experiencing violation and fear, there is the whole other ball game of going through the rigmarole of investigations as a result of the fraud. To avoid this scenario altogether, here are a few steps to steer clear from corporate fraud at your workplace.

Know and understand your employee

This is the first and most important rule. Doing a background check helps in a big way. Know how your potential employee left his previous employer. Do not turn a blind eye thinking that this is not going to happen to you simply because the individual has impeccable knowledge of the industry. You can save yourself a great deal of time, effort, and money when you look into this element in the best way possible.

Conduct a background check

More often than not, embezzlers go ahead and repeat their offenders. It does not hurt to perform a straightforward background check. It can actually prove to save you from ending up in a sticky situation. Conducting a background check is not costly, perfectly easy to perform, and can stop you from hiring a fraudster. Even if you have an uncanny feeling at the time of hiring, listen to your gut. It is better to double-check and be at peace rather than go through sleepless nights of fraud investigation.

Keep functions and duties separate

The fact that small business owners are busy is not exaggerated. This is why it can be common to overlook the obvious when assigning tasks and responsibilities to employees. It is sheer stupidity to assign someone to do most of the roles and responsibilities. You cannot let a single person write checks, answer phones, make deposits, open an email, prepare invoices, put together financial reporting to be offered to the business owner, and their taxpayer as well as reconcile the bank statements. You are basically setting yourself up for fraud.

If you feel something is not right

If the lifestyle the employee is leading does not fall in line with their legitimate compensation, you might feel or want to probe harder. If you have a bookkeeper, who cannot even provide and offer seamless reports from the books, you have good reason to be wary. You are not working for the employee, they are working for you. So trust your instincts and go figure out what is bothering you. If you feel your business is doing well but cash flow tells you otherwise, it is time to look into the matter.

Expect nothing but straightforward answers

When you put forth a good question, expect nothing less than a good, straightforward answer. Say for instance, in the issue of bookkeeping. If you are asking your bookkeeper for a report that brings to light all of the payments made to vendors and the bookkeeper somehow stalls or tells you it is going to take long to do it, it is safe to be cautious. A similar instance that eventually leads to fraud showed the forensic accountant putting this report together within an hour or two. There can be a reason why your bookkeeper may not show you the records simply because their scheme may become exposed.

In all probability, you may know when you are being fooled. You know when something is up and something is not right. The evidence found during the corporate investigation only throws light on what is going on but it can be too late by then. You may only recognize the circumstances, situations, and patterns when your embezzler has already committed the crime. So, see that you always keep a level head, do not trust people blindly especially when it comes to money matters, and do not ignore the obvious that is in front of you.

Author's Bio: 

Rajat Sahoo, is associated with Netrika Consulting India, have years of experience of the domain. I love to read and write about latest and useful tips for legal issues, travel and corporate news.