You might think it could never happen to you but it most likely will. It might not be on a grand scale and will likely be vigorously justified/denied by the perpetrator but it still is a betrayal and a crime. Here are a few tips to help:
1. Increase the perception of detection – make sure employees are aware that dishonest acts will be punished. Fraud is easier to rationalise when employees believe their wrongful acts will go undetected and unprosecuted.
2. Segregate duties – don’t leave an employee in a position to correct their own work. If people know that their work is being watched they are less likely to commit fraud.
3. Set the tone at the top – a written ethics policy is an excellent method by which management can objectively communicate its philosophy toward fraud. You will also need to walk the talk.
4. Require time away – enforce mandatory vacations. An employee who comes in early and stays late or never takes a vacation has the perfect opportunity to conceal their wrongdoing.
5. Surprise audits – should be part of your pro-active fraud policy. All too many notable fraudsters knew that the auditors were coming, allowing them time to alter or destroy evidence of their wrongdoing.