Employee fraud is not new and can occur as long as people are in proximity to valuables. Consider the ancient Greek mariner Hegestratos who insured his boat and cargo with an ulterior motive. Instead of sinking his empty ship and selling the cargo at a profit, however, his own crew caught him in the act and he drowned.
Employees that steal goods or services at work are guilty of employee fraud. Any member of a corporation can do so, from a trusted entry-level worker to an unscrupulous CEO. Even an unfortunate owner like Hegestratos may try to benefit from fraud.
Employee fraud is responsible for 7% of revenue loss annually, and can be preventable with a few simple strategies. Take a look at three proactive ways you can stop employee fraud at your business.
At the forefront of fraud prevention is the option to pre-screen potential employees before you hire them as part of your team. Pre-screening helps learn more about a person beyond any information on a resume and application which may be false or exaggerated.
Background checks and investigations during a pre-screen can reveal important data about a potential employee and eliminate risks associated with the wrong hire. Pre-screening can also:
Lower employee turnover
Save time and money
Increase workplace safety
Reduce your liability
The pre-screen process can help reveal which candidates are better suited for your company, and which ones to avoid. When your human resource department needs additional assistance, you can outsource your pre-screening to a professional that specializes in unique investigations and background checks.
Facility Access Control
Employees may try to commit fraud and steal a range of valuable items like inventory, equipment, cash, and electronic data. You can help stop employee fraud when you limit and control who can access key areas of a building or facility. Access control lets you manage building control via several methods.
Electronic Entry Devices
Give certain employees an electronic device programmed to allow them entry through certain doors. You choose who can access exterior doors to open and close business, storage doors that contain valuable inventory, and office doors that house computer equipment and important data.
Biometric Door Locks
Biometric door locks take electronic entry to the next level because they require unique personal data rather than an electronic device. Employees must use their fingerprint to unlock certain doors. Fingerprints are specific to an individual and cannot be borrowed, stolen, or lost. Additionally, biometric door locks record activity data to a computer for later access.
Speaker and Video Intercoms
Finally, audio and video proof of employee fraud is possible with intercom systems you assign to specific doors in a building. Intercoms allow you to see and hear in real time which employee is at any given door. This kind of information helps prevent fraud because employees know they must participate in intercom communications to gain access first if they attempt to steal.
Security cameras protect your business from employee theft as well as vandalism and burglary 24 hours a day. Concealed cameras can record incidents as they occur and alert you when something is wrong. However, cameras are a deterrent when potential thieves see they are positioned right in plain sight.
Different cameras give you different advantages. For example, infrared and thermal cameras capture footage at night or other low-light conditions. Still others can tilt, zoom, and pan to increase their image capability and effectiveness.
Professional security cameras are best installed by a team of specialists trained in placement and light conditions unique to each facility. Talk to the experts at HSI Security for advice regarding security camera placement and other ways to stop employee fraud at your business.