Fraud in the workplace can be detected, but prevention of fraud is even more valuable. What are the most successful ways to detect and prevent workplace fraud?
Businesses of all sizes are at risk for fraudulent activity, especially due to more incentives and pressures for companies to outperform, and more financial hardships for employees to overcome than ever before. Even if your company has never experienced any type of fraud, the possibility should not be ignored.
Detecting workplace fraud involves review of financial statements and other financial documentation, knowledge of employee responsibilities and accountability methods in existence, as well as detection and analysis of information from all types of media.
Preventing fraud in the first place can save even more, including in legal costs from prosecution. Here are some popular ways savvy businesses prevent fraud:
- Top-level management must set the ethical tone;
- Establish, then implement a Privacy Policy;
- Know and educate your employees;
- Conduct “surprise” or internal audits;
- Create fraud reporting mechanisms and implement internal controls; and
- Continue to assess potential fraud risks on an ongoing basis.
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For more information on this topic, please contact a member of Withum’s Forensic and Valuation Services Team.
