Preventing White Collar Crimes & Employee Theft

Preventing White Collar Crimes & Employee Theft

Often in the world of business money gets lost, but it doesn’t necessarily get lost by accident. The world of white collar crimes is one that has an enormous amount of options. Unlike your violent or lesser staged crimes, white collar crimes tend to be well thought out actions that come in a variety of forms, often undetectable. From bank fraud, to bribery, to computer related fraud involving the theft of banking related data, credit card information and more. White collar crimes have been around as long as businesses have existed, and often they are inside jobs.

Doing your best to hire the right employees is the first step that a person can take to help prevent such internal disasters. Though there is no “perfect” employee, there are those that are surely preferred over others and by carefully screening applicants, you can possibly filter out those that have a history of theft.

Create a friendly work environment. Employees that are happy at there place of work are more likely to report wrong doing. Employees tend to appreciate work environments that are friendly and in turn become more sensitive to issues that may disturb that environment. Also make sure that you show that you value your employees. Don’t just focus on the things they can improve on, but commend them for their achievements.

Another tip for preventing employee theft is to separate duties. You want to make sure that the checks and balances in a company are not all controlled by one person. If one employee is in charge of recording transactions, there should be another employee to verify what has been recorded.

Increase the security threat in your business. Whether through the use of online cameras, posted signs or an actual patrol, you want to let employees know that if they are caught stealing good that belong to the company, there will be severe consequences. When it comes to security and employee theft, also let your employees know the dangers involved with their own property. Many times, because a criminal can’t get to the companies property without being detected, they will turn to seeking ways to steal the employees property.

Even though all the possible steps to avoid employee theft may have been put in place, there comes a time in many businesses where it still occurs. Someone may take money off of the books that doesn’t belong to them. Someone may transfer money to accounts so that it goes unnoticed or use a myriad of other ways to embezzle money from your business. It’s those times that you’ll need to get a forensic accountant that can help you trace the money flow and prosecute the necessary parties.

Forensic accounting is the branch of accounting that traces financial activities and builds cases that support claims. For instance, you have someone that recently worked with the company and after he left, a large sum of money came up missing, but the books look in order. A forensic accountant will look into the matter an find what was transferred from where, when it happened and how the theft possibly occurred.

When employee theft or corporate fraud hits your company and you need to find out what has happened take a look for a ACCA certified accounting firm that has forensic accountants to give you a hand. Not only can they help you recover your money, but help you implement strategies to prevent such thefts occurring again.

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