How To Detect Employee Fraud


Sadly in the world today there is a lot more employee fraud going around then there ever use to be. This is a result of a number of reasons such as poor economy, poor morals and just plain the way people turn out to be over the year’s. But many boss’ have a hard time picking out the employee fraud these day’s as most offenders don’t exactly list it as their daily activities. Look below for some helpful way’s on detecting employee fraud that I recently came across on Open Forum.

Asset misappropriation. Asset misappropriation covers stealing or “borrowing” resources for personal use without permissions. Examples include check forging, skimming cash from the register and using company vehicles for personal gain.

Another form of employee fraud is corruption. This may be a little easier to detect as the employee general is taking some sort of bribe or kickback from other employees, clients or customers. This can be caught by sitting down with employee’s on a regular basis and having them fill out a survey or questionnaire on the general practice of the company, or simply having an open door policy to where all of your employee’s are welcomed into your office to share concerns.

One other form of fraud that is often committed is financial statement fraud. This is where an employee will faulcify financial documents by either failing to include certain numbers and information or by inputting the wrong numbers. This can most definitely be caught by simply taking a look at all financial documents even just once a month and knowing what should and should not be on there.

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