The most damaging fraud doesn’t always come from outside organisations. If your business doesn’t have the right procedures in place, your business could face serious threats.
Most employees are honest and trustworthy. However, a company with weak internal processes and controls is vulnerable to the risk of fraud from within. This could even involve a trusted member of staff – something that may be difficult for your business to face.
Theft is only part of the story. Your employees may provide goods and services to friends and family without authority. Even more serious, is the theft of confidential information, intellectual property and customer information – including pricing or tendering figures.
In some instances, organised criminals will attempt to put individuals inside an organisation. The aim? To get hold of confidential information or commit fraud, now or in the future. Call centres, IT departments and warehouses can prove easy targets. On the other hand, existing staff may be willing to hand over information to a criminal third party.
Does your business have effective controls to safeguard company assets, including customer data and intellectual property?
• A new member of staff who resigns shortly after joining.
• An employee that doesn’t want to take their holiday entitlement.
• Any signs that a staff member is having financial problems.
• Complaints from customers regarding missing documents or unrecognised transactions.
• A change in an employee’s behaviour, personality or performance.
• A sudden change in an employee’s lifestyle, unexplained wealth or a standard of living beyond their apparent means.
• When a staff member consistently under-performs or exceeds their targets.
• An employee’s unusually close relationship with suppliers or contractors.
• Suppliers or contractors who always seem to deal with the same employee, perhaps insisting on this.