The Best Ways For Preventing Fraud In Your Business

Every year the massive losses from corporate crime seem to be getting bigger. Measured in hundreds of billions, lost revenue is a big problem. Profits are eroded from the bottom line and instead of healthy results, often losses are reported. Such losses can be enough to cause a business to fail completely.

Preventing losses from corporate theft need not be the task of a forensic accountant. It is not a foregone conclusion that you will have to employ a fraud investigation expert to recover your losses. There are several easy ideas for preventing corporate crime that are not expensive. These few avoidance controls could mean the difference between making a profit and making a loss - or worse!

1. Communicate to all your staff the fact that your organisation does not tolerate white collar crime - and when found out, will definately prosecute as far as possible. This will send the message out that your business is not complacent, is on the lookout and may dissuade the opportunistic thief from having a go. This fraud policy statement need only be a circulated sheet of paper, or it could be a properly printed staff manual.

2. Check your accounting controls in all departments. Check that one person is not able to raise cheques on his own. Ensure that your accounting checks are in place and everybody complies with them. Make sure that managers are checking everything properly and signing that they have done so.

3. Get rid of individual offices. Move to open plan where it is difficult for a crook to operate. This will help your staff to work in a social atmosphere and ensure fraud does not take place in secret rooms.

4. Ensure all staff and managers take at least a couple of weeks annual holiday. Economic criminals find it hard to ply their trade if someone covers for them as their actions are then bound to be discovered.

5. Let your staff know that auditors are visiting. Even better, keep the subject of their visits live and don't forget to mention that specialists are checking the fraud prevention controls. The perception of the business taking an active interest in such prevention will keep the crooks on their toes!

These are some basic tips for avoiding unwelcome losses in your otherwise successeful business. They do not cost much and can be implemented easily. There are many more that are similar but essentially involve applying common sense to the management of your business. They get the message across that the organisation is not complacent and this on its own can be enough to deter the criminal intents of some staff.

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Mark Jenner is a Fellow of the Institute of Chartered Accountants in England and Wales, a Certified Fraud Examiner, a Member of the Expert Witness Institute and has a Masters Degree in Fraud Management. He advises business large and small on how to be secure from the fraudster =>http://www.mark-jenner.com

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