Fraud Prevention in the Workplace

All over the globe, companies are victims ofshould always try to contact the applicant's former
fraudulent activities everyday in the workplace.employers for history information. Depending on the
Workplace background checks are necessary forposition, a poor credit history could be a red flag
companies who want to safeguard corporate assets.indicator, especially for an applicant who will hold an
The scope of workplace fraud is broad. It includesadministrative position once hired by the company.
petty thieving, such as employees who wouldMost importantly, an applicant with criminal history
"borrow" paper supplies with no intention of returningshould raise issues for obvious reasons. These are
or reimbursing them; to heavier crimes such asbasic defenses a company can take during the initial
massive amounts of cash magically disappearing fromstages of employment.
the company books. It is no wonder that employee2. Companies with strong internal control reduce
background check and employer background check isopportunities for fraudulent activities. Internal controls
becoming more and more critical for any businesssuch as having dual signatories for cash and
institution.high-valued inventoriable item; segregation of
Although companies cannot detect most ofincompatible duties; having effective password
infractions, there are ways to prevent theseaccess controls and placing cameras in strategic
fraudulent activities in the office. Here are some:company premises would go a long way.
1. Companies with a good screening process usuallyThese preventive measures deter both internal and
get efficient, trustworthy workers. Backgroundexternal criminal acts. Unauthorized individuals will have
checks are quite a common practice in everya hard time opening vaults or withdrawing money
organization. Before finally letting anyone join thewithout the proper access, electronic or otherwise.
company, HR may conduct the following:3. Companies with high regard for good governance
• family background checkare more likely to experience fewer misdemeanors
• employment checksfrom their employees. When employees are treated
• credit historywith respect and proper accord, they synergize with
• criminal background checkthe company well and help the company grow.
Although family background does not say muchCompanies that deliver promises to employees,
about the individual itself, it gives the company acustomers, and suppliers usually get high regard from
general idea on the applicant's upbringing and beliefs.the organization and the community, thereby
Employment history reveals more: someone wholessening foul intentions against the company.
often transfers from job to job could indicate anThese are just a few preventive ways to help
underlying problem. That's why potential employerscompanies avoid fraudulent acts in their organization.