The risks of crime have become increasingly global. Also developments in technology ensure businesses are now more than ever, faced with not only an increased exposure to commercial crime but a huge variety of different ways coming through from many different ways. Thieves and fraudsters can include internal employees, external sources, or a combination of the two working together for their own personal gain.
It is a big concern that many employers do not realise how vulnerable they are to financial loss caused by the fraudulent acts of their employees.
When discussing these risks with our clients, they will often respond with answers such as “My employees are like family, they would never steal from me,” or, “There is really nothing in my business for employees to steal anything.” Unfortunately this is not always reality.
Every year, millions of dollars are lost due to employee dishonesty. Many businesses suffer severe financial damage and for some even leads to them becoming insolvent sometimes leading to bankruptcy. We often hear about the long-time, trusted employee who has been siphoning money out of the employer’s business for years.
There are some acts that are one-time thefts but most are large losses are caused by long-term, ongoing schemes that are cleverly concealed for months.
What can business owners do to protect themselves from this risk? There are two main steps that should be taken.
• The first is to establish a loss prevention program.
• The second is to obtain employee dishonesty insurance.
What should you do if a Fraud is committed in your workplace? Click here for some advice from Clayton Utz on points to consider
Here are examples of Fraud claims within our community, the lessons learnt and what can be done to reduce the chances of it happening to you with good common sense strategies.