How to Spot Fraud in Your Company

Unfortunately, fraud can happen in any workplace. As a business owner or manager, it’s important to be on the lookout for any suspicious behaviours from employees that may indicate fraudulent activity. Here are some signs that fraud may be occurring in your company and tips on how to detect it.

– Missing inventory or supplies.

Unexplained shortages in products, materials or office supplies may indicate someone is stealing items for personal gain. Do regular inventory audits to catch discrepancies.

– Altered documents.

Look for things like modified company checks, inflated reimbursement reports and forged signatures which point to financial deception. Verify all important docs are authentic.  

– Suspicious transactions.

Be alert to last-minute payments, transactions with vague descriptions, and unusual third-party wire transfers which may signal embezzlement schemes.

– Employee lifestyle changes.

If workers start living beyond their means with flashy purchases, take note. Sudden affluence may mean they’re receiving income outside their salary.

– Unusually close vendor friendships.

Employees bonding with particular vendors can lead to kickback schemes that inflate costs. Routinely rotate vendors to disrupt relationships.  

– Refusal to take leave.

An employee who refuses to take vacations may be covering up a fraud scheme that would be exposed in their absence. Enforce mandatory PTO. 

– Resistant to oversight.

If a worker excessively delays or complains about audits of their work or financial reporting, it may point to misconduct.

By proactively watching out for any of these red flags, business leaders can catch fraud while it’s still small and prevent it from escalating. Act quickly if warning signs appear to send a zero-tolerance message. With vigilance and swift action, you can protect your company.

Find these tips helpful? Contact us on (012) 880 5999/ (011) 568 0928 for more information on how to protect yourself from being a victim of fraud within your company.


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