No matter the size of you company, taking some of the following steps could prevent a business from falling victim to employee fraud or theft.

• Separate the financial duties to provide a system of checks and balance. Some of these duties include:

– who prepares checks for payments

• who receives payments from customers

• who makes bank deposits

  ---

  ---

• who signs the checks and verifies the amount/vendor

• who reviews the bank statements

• Endorse all checks in pen, do not provide employees with a “signature stamp.”

• Set a monetary amount that needs secondary approval prior to any expenditure or separate quotes from multiple vendors for large purchases.

• Assign separate check cards to individual employees in order to track their spending.

• Conduct background checks when hiring.

Four consistencies with suspects caught embezzling or stealing money from employers are known as the 4 D’s to law enforcement: debt, divorce, drugs or disgruntlement.

Being in tune with your employees and knowing what is going on in their lives can also help prevent future disasters.