As a business owner or Managing Partner with a large corporation, you want to trust your employees, and this includes upper management, as well. You interviewed, tested, and helped train the best candidate available who eventually became a part of your business. After roughly 16 months, you find yourself looking at a case of Occupational Fraud. How did this happen? Oversight. Weak internal security accounts for almost half of the fraud instances.

According to the "Report to The Nations: 2018 Global Study on Occupational Fraud and Abuse," publication, 2,690 real cases of occupational fraud were reported from 125 countries in 23 industry categories with $7 billion total losses. Small businesses generally suffer the brunt of monetary losses in an approximate period of 16 months per case. Employers need internal controls and a trained resource for prevention. An internal audit is generally a good place to start and this can be done by an independent third-party source such as Stellaris Group Human Resources in Roswell, Georgia, by a CPA firm, or by management.

 It's difficult to know where to even being to start when it comes to preventing occupational fraud in the workplace, but with a few steps you can ensure your company can be safe:

Overall, implement a Hot Line for employees, vendors, and competitors to tip you off if they suspect fraud. Have a good anti-fraud plan in place. Small businesses suffer greater losses because they sometimes lack the resources larger corporations have in place. If you do not have a Human Resources department, hire one to independently review your current anti-fraud plan for recommendations or guidance. Stellaris Group is located at 570 W Crossville Road in Roswell, Georgia and they offer this service along with every facet of Human Resource Management available for large and small businesses.

References:

https://s3-us-west-2.amazonaws.com/acfepublic/2018-report-to-the-nations.pdf