The economic conditions of late have, unfortunately, set the stage for fraudulent activity. But fraud doesn’t happen in an instant. Those who steal from their businesses often plan extensively and take little bits of money at a time. Fortunately for management, this means that if you’re watching carefully, you can spot warning signs and take the action necessary to prevent major losses.
To help you do so, we’re sharing 4 scenarios in which fraud tends to occur, the warning signs of each specific activity, and tips to prevent all from occurring.
1. A company manager steals a large sum over several years. He does so sneakily by paying for personal expenses with company funds.
• “How does he afford that?!” Catch yourself saying this and take note. The most common sign of fraud is an individual living above his or her means.
• The manager has become a control freak. He monopolizes the accounting department and takes on the role of watchdog over other employees.
• Reluctance to take time off. If the manager isn’t in the office, he can’t control who sees what, therefore his fraudulent behavior may come to light. (more…)