Crime Tip of the Week: How to protect your business from fraud, theft or embezzlement
January 13, 2015
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
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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.