Occupational fraud poses a real threat to businesses, and more than half of small and medium-sized businesses that are vulnerable to occupational fraud don’t believe they are at risk, despite the fact that one in four businesses have experienced an occupational fraud incident. That’s a real threat and you have to prepare for it.
In order to reduce your risk of being a victim of this type of fraud, you should implement these five preventative strategies:
1. Evaluate Your Risk of Fraud
The first step in protecting your business from occupational fraud is to assess your risk and develop a fraud response plan. Your business will be protected from criminals by taking this step, so it is the most important step.
As a result of not assessing their risk and putting a plan in place, most businesses are unprepared to deal with fraud. You should include preventative strategies, protocols for hiring and retaining employees, training, and education, as well as disciplinary actions in the event of fraud.
2. Limit Access to Authorized Employees
You can protect your intellectual data by ensuring only authorized employees have access to confidential information through a good-quality office security system. In the event that information is leaked, you will be able to target your investigation to include only those who had access to the information.
It is easy and cost-effective to increase your security by using managed access control, or keyless entry. An access management system is also vastly more effective if it’s integrated with an intrusion detection system so different employees have different access levels.
When the security system is armed, only authorized employees will be allowed access to the facility and will be able to disarm it. Unauthorized employees will not be allowed access to the facility when the security system is armed.
In addition, when the system is connected to a CCTV system and a central monitoring system, users can make instant changes to the access system, at any time, like adding employees, deleting employees, changing access levels, or locking/unlocking doors.
3. Implement Internal Controls
In order to prevent occupational fraud, you can implement a number of internal controls. Fraud often occurs when there are opportunities, such as working alone, or a lack of regular assessments, so implementing a set of internal controls can have a significant impact.
4. Regularly monitor your facility
In order to decrease opportunities for isolation that motivate fraudulent activity, you may want to implement a quality CCTV surveillance system that is monitored 24/7. If you can’t reduce isolation opportunities, consider implementing a quality CCTV surveillance system. Ensure that there are no blind spots in sensitive areas so that employees know they are being watched and recorded. Your business will be protected after the office is closed while deterring fraudulent behavior while employees are present.
5. Get to Know Your Employees
Building positive relationships with your employees can help prevent occupational fraud. You will not only be able to build a relationship of trust, but you will also be able to identify motivating factors such as financial problems and personal problems by observing changes in attitude. In addition to contributing to a positive work environment, strong relationships reduce the risk of occupational fraud as well.