Any organization can fall victim to theft of cash, assets, merchandise or other property when someone perpetrates fraud, embezzlement, forgery, misrepresentation, robbery or any other type of business-related crime on the company. Here are the top 4 strategies to prevent crime in the workplace:
1. Internal Controls
• Reconcile bank account statements monthly.
• Require countersignature on checks over a specified limit.
• Immediately stamp all incoming checks “for deposit only”.
• Conduct physical inventory annually.
• Keep all inventory records computerized.
2. Funds Transfer Controls
• Put in a software security system to detect fraudulent computer usage by employees and outsiders.
• Change passwords and access codes at regular intervals and upon termination of users.
• Electronic fund transfer verifications should be sent to an employee that is separate from the individual that initiated the transfer.
3. Physical Controls
• Implement a fraud policy for business best practice.
• Set up a confidential hotline for employees to report violations.
• Install a premises alarm system.
• Screen employees for prior employment verification, drug testing, education verification, credit history and criminal history.
4. Social Engineering Controls
• Initiate a procedure to verify the authenticity of any payment or funds transfer made by an internal company source.
• Use a call back procedure for any wire transfer requests for individuals outside the organization to confirm the request was not fraudulent, and to prevent funds from being transferred into a fraudulent account.