Protecting Your Business from Risks Including Employee Crime

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Business owners and managers are familiar with the common risks that can plague a business – from supply chain disruption to product quality and the resulting unsatisfied customers.  However, there is another common risk that may not get the attention it deserves – employee crime schemes.

Ideally, you should be able to trust your employees. Unfortunately, desperate people do desperate things, such as steal from their employer.  Fraud can be expensive, especially the longer it continues.  Four common types of employee fraud are discussed in “4 Employee crime schemes that plague businesses,” posted on, as well as steps you can take to reduce your risk of fraud.  Here are a few helpful tips:

  1. Padding payroll checks: Employees try to alter the payroll amounts on a check or create duplicate checks to double their income.
  2. Extra expenses go unnoticed: Similarly, employees may pad expense reports with expenses that haven’t occurred or try to pass through non-business expenses.
  3. Just another vendor: Employees might also try to create false vendor accounts and bill your business for products or services that simply don’t exist.

Unless you validate every check that is written, you can easily miss extra or false expenses like those listed above.  The Hanover Insurance Group suggests performing background checks for all hires, including seasonal or temporary help, and performing training on company policies such as employee conduct.  You can also strengthen checks-and-balances by implementing stronger business technology.

A workflow solution, such as U-LINC®, can provide greater insight and control over common daily business activities.  Workflows introduce consistent methods for performing tasks and offer automatic notifications to appropriate managers when tasks are initiated.  For example, an employee can create a vendor or customer account and details are automatically sent to a project manager, CFO, or other upper management.  Management can perform proper vetting to verify the vendor exists and meets appropriate business standards.  As such, it would be more difficult for an employee to create a false vendor which reduces the chance for this type of fraud.

Employee fraud is a risk that can result in great losses.  Contact Integrity Data to learn how to protect your business with U-LINC and other powerful business solutions.

By Integrity Data, a Microsoft Dynamics GP ISV out of Illinois

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