Handling of employee fraud.

[Somto9Light]

People always found a way to cheat the system, so there is no fool proof system and I guess it is possible only by monitoring everything firsthand. Recently I saw an article related to this issue, a supermarket manager was stealing money using a ghost employee means the person didn't exist but continue to pay the salary every month in the name of that non-existent person until one day someone decided to check and the manager get caught for stealing around 200K

This is where a lot of business owners often miss it, they think the moment they just open a business and get people employed, everything will just magically start to go smoothly and the profits would start coming in. Even if you’re paying your staffs a mouthwatering amount, there’ll always be dishonest employees who would still wanna cheat and steal from the business, which is why a business owner must always keep close watch on his business, and employees, install CCTV cameras if possible.

[Findingnemo]

People always found a way to cheat the system, so there is no fool proof system and I guess it is possible only by monitoring everything firsthand. Recently I saw an article related to this issue, a supermarket manager was stealing money using a ghost employee means the person didn't exist but continue to pay the salary every month in the name of that non-existent person until one day someone decided to check and the manager get caught for stealing around 200K

This is where a lot of business owners often miss it, they think the moment they just open a business and get people employed, everything will just magically start to go smoothly and the profits would start coming in. Even if you’re paying your staffs a mouthwatering amount, there’ll always be dishonest employees who would still wanna cheat and steal from the business, which is why a business owner must always keep close watch on his business, and employees, install CCTV cameras if possible.

But there are more people out there in the world who live clean life with hiogh moral compass but they are not given the opportunity to take face due to favoritism and office politics and something that happens internally so as a owner just give a shot to the guy who you think is most honest and the easy way to find is every other employee will hate them and there is your guys for the job.

[BitDiscussion]

Firing has always been the correct answer, there are no cases where you keep a fraud and be happy about it later on, that is not a possibility and you have to see that. Otherwise you are not going to end up with anything good, they will fraud you again.

You should realize, firing an employee is not as bad as you think, because if it is hurting your business, then it is better to fire one of them than be screwed and have to fire everyone because you bankrupt. I have never been a perfect employee, but at least I have never frauded anyone, bad employee you can handle, but a fraud? No way.

[YOSHIE]

Handling of employee fraud.

Running a business or company, the biggest challenge is the employees themselves, the development of the business and the destruction of the business we run are caused by the employees.

For this reason, there are many ways that companies can use to select employees who are royalty for the company we run, that is the function of three months' training for new employees, during the trial period we can assess which employees are royalty for our business and which are not.

China, when accepting new employees, the first week is tested with money, it's an honesty test, something China does when doing business, they don't trust anyone at the cashier's desk, except: their children and wife or husband.

[pawanjain]

Sometimes the biggest challenge that leads to business shutdown isn't from external competitions around the business environment but from within the workforce.

A business person who owns a company  must ensure to have internal control and structure in your organisation. With a functional internal control, employees display best practices, discipline and solemnity with how they dispose their jobs, resume and attend to work on time etc. Internal financial theft and misconduct are detected asap, then reducing the risk of collapse of the organisation from internally which are related with employee fraud.

Finding good employees is a skill that not many poses. I believe, having good employees with you is a luxury.
Businesses are hard to run especially when your employees are not happy with their jobs.
As a business owner, it then becomes the owners job to keep their employees happy and only then the business will sustain in the long run.
This is what I have learnt from people around me who own businesses.

[Franklyn-wood]

Sometimes the biggest challenge that leads to business shutdown isn't from external competitions around the business environment but from within the workforce.

A business person who owns a company  must ensure to have internal control and structure in your organisation. With a functional internal control, employees display best practices, discipline and solemnity with how they dispose their jobs, resume and attend to work on time etc. Internal financial theft and misconduct are detected asap, then reducing the risk of collapse of the organisation from internally which are related with employee fraud.

Speaking from the angle of my understanding, the biggest motivation for employee fraud in this part of the world is underemployment. Apart from the multinationals and few indigenous companies, the entire work force of most African countries, including mine, are underemployed. Civil servants in my country, for instance are hardly paid up to $200 monthly and even university professors earn less than $500 per month. This leaves room for fraud because they have to exploit the system to be able to pay their bills. If workers are ell paid, the tendency for fraud is greatly reduced. Check the IOCs as a case study, their staff are happy and have no motivation for fraud unlike some companies and even government workers, they channel all their energy on how to exploit the system.

Those of you that want to be entrepreneurs, pay attention to your workers renumeration and welfare, if they are well paid, they will give their life to the work and protect it with everything they have.  

All you have said are true and correct. Every entrepreneur that wants to receive quality services from it employee must be ready to meet the needs of it workers to a bearable extent.
Many employer are willing to treat the there employee well but because of the high level of taxes and other forms of payment they need to pay to government and other expenses made in running the business. Some employer at this point becomes stingy and decide to cut workers salary and entitlement for them to run the business.

[Yeesha]

Sometimes the biggest challenge that leads to business shutdown isn't from external competitions around the business environment but from within the workforce.

A business person who owns a company  must ensure to have internal control and structure in your organisation. With a functional internal control, employees display best practices, discipline and solemnity with how they dispose their jobs, resume and attend to work on time etc. Internal financial theft and misconduct are detected asap, then reducing the risk of collapse of the organisation from internally which are related with employee fraud.

Finding good employees is a skill that not many poses. I believe, having good employees with you is a luxury.
Businesses are hard to run especially when your employees are not happy with their jobs.
As a business owner, it then becomes the owners job to keep their employees happy and only then the business will sustain in the long run.
This is what I have learnt from people around me who own businesses.

They are a lots of graduates who are willing to work even if it is a slight opportunity, but sometimes it's not that easy to find a good employee. Because choosing an employee shouldn't only depends on their certificate or qualifications. It is very important to examine their loyalty, commitment, honesty, kind, generous, and truthfulness. Because when looking for an employee, you would definitely come across different kind of peoples or individuals, some of them will be qualified for the job because they have the knowledge, and skills needed to run the business smoothly, but they will lack manner, impatient, unkind towards others. And you will also meet those who are kind, generous, loyal, committed and trust worthy but doesn't have the skills that is needed to run the business. But at the end of everything, let's be realistic, no one is a saint and no one is hundred percent perfect, so as a business owner you just have to choose who your right hand possess.

[Unknown Op]

They are a lots of graduates who are willing to work even if it is a slight opportunity, but sometimes it's not that easy to find a good employee. Because choosing an employee shouldn't only depends on their certificate or qualifications. It is very important to examine their loyalty, commitment, honesty, kind, generous, and truthfulness. Because when looking for an employee, you would definitely come across different kind of peoples or individuals, some of them will be qualified for the job because they have the knowledge, and skills needed to run the business smoothly, but they will lack manner, impatient, unkind towards others. And you will also meet those who are kind, generous, loyal, committed and trust worthy but doesn't have the skills that is needed to run the business. But at the end of everything, let's be realistic, no one is a saint and no one is hundred percent perfect, so as a business owner you just have to choose who your right hand possess.

Finding customer is the basic necessity of a business to run similarly protecting your business from internal theft is also very important to save your business from fraud. Your perception is quite correct that most of the businesses do not decline or fail because of the sales but they fail because of the internal theft that happens in their company,  when employees don't feel enough financial stability while working , their mind diverted into other illegal activities including internal thefting.
 There should be internal digital monitoring system to ensure that a business does not have to face failure because of employees dishonesty and it does not turn into a financial nightmare for the owner. There should be regular audit and particular security protocols. Use different tools and softwares to track the cash flow and keep an eye on the inventory.

[Ab de villiers]

If they are found to be the actual criminals, then reporting them to the police and taking legal action is the right way to handle it. And if lucky then you may recover the whole or part of the funds involved in this case.

Business isn't always about the product but having the right people with you, which also the workers, when the employer keeps them well-paid the productivity will likely to be higher and may not be involved in other shady activities. But have the necessary tools to oversee them and automate the money and transactions which is possible with the technology we have now.

It is very sensitive issue if employee involve in such type of activities, it is not only give harm to the firm but it is also give damage to the image, trust and product as well of the company. So sometime installment of cameras and applied strict policies and keeping deep eye on them are not enough. Because it is the reality that offering bonus and give incentive and facilities even then some have not good in nature and do not show any honest behavior . But the question is that how a company can identify that one person.

So in my point of view company should made a questionnaire with the help of psychiatrist. And  asked those questions at the time of interview. It can help you to assess the personality of the person or it would be an immediate method of checking the psychology of the employee. And in many big firms they  utilise this method because its give almost 80% result about the employees nature or mentality. Adopting this technique firm can hire only those candidates who have healthy mindset. So after doing this task I think the company can easily trust on their employees. Then by additional measurements like binding through communication, justice and merit system can help the firm to grow in better way.

[pawanjain]

They are a lots of graduates who are willing to work even if it is a slight opportunity, but sometimes it's not that easy to find a good employee. Because choosing an employee shouldn't only depends on their certificate or qualifications. It is very important to examine their loyalty, commitment, honesty, kind, generous, and truthfulness. Because when looking for an employee, you would definitely come across different kind of peoples or individuals, some of them will be qualified for the job because they have the knowledge, and skills needed to run the business smoothly, but they will lack manner, impatient, unkind towards others. And you will also meet those who are kind, generous, loyal, committed and trust worthy but doesn't have the skills that is needed to run the business. But at the end of everything, let's be realistic, no one is a saint and no one is hundred percent perfect, so as a business owner you just have to choose who your right hand possess.

That's definitely true. Nobody is perfect and we always have room to grow. We just have to accept this fact.
So keeping that in mind, we have to decide who will be the right fit for the desired role.
Sometimes a person with all the required skills might not land the job and a person with slightly less skill may also land a job.
It depends on what the business owner/interviewer sees in that person.

[goldkingcoiner]

Sometimes the biggest challenge that leads to business shutdown isn't from external competitions around the business environment but from within the workforce.

A business person who owns a company  must ensure to have internal control and structure in your organisation. With a functional internal control, employees display best practices, discipline and solemnity with how they dispose their jobs, resume and attend to work on time etc. Internal financial theft and misconduct are detected asap, then reducing the risk of collapse of the organisation from internally which are related with employee fraud.

I think if there is employee fraud to the point where it might sink the entire organisation then that alone is only a symptom of a deeper illness. Controlling the fraud will do nothing to address the real problem of why there are such disloyal and fraudulant employees working there in the first place. Did they become that way or were they like that when they were first hired?

[Queen uloma]

You’re right, Most people always blame the external competition when business begins to fail, but the truth is that half of the problems are caused by people who are handling the business. If a company does not have strong Internet control, dear staff will start coming late, some will not even be serious with their work, why some will focus more on fraud, If no one is monitoring the activities that is going on in that company, they will be running shortage and productivity will drop, Which the company will start going down gradually. So management have more to play in a business, even if their boss decide to ignore some issues, the management are supposed to lead with fairness and enforce rules that workers will follow.

[AgriTrack]

This is where a lot of business owners often miss it, they think the moment they just open a business and get people employed, everything will just magically start to go smoothly and the profits would start coming in. Even if you’re paying your staffs a mouthwatering amount, there’ll always be dishonest employees who would still wanna cheat and steal from the business, which is why a business owner must always keep close watch on his business, and employees, install CCTV cameras if possible.

Employee fraud refers to the deception that an employee commits in connection with his work, with his company or with an organization so that he can gain personal gain or benefit from it, including stealing money making false records or giving someone a wrong opinion or advice about this work so that he can suffer losses from this work and handling refers to examining and investigating this work avoiding losses, and being aware of it in the future so that there is no major loss. If a person steals from a company or organization legal action can be taken against him. If a person tries to do wrong to the company it tarnishes the company's reputation and hinders the development of the business. Therefore the organization should have honest staff and strict supervision so that future troubles can be avoided

[Issa56]

Even if you’re paying your staffs a mouthwatering amount, there’ll always be dishonest employees who would still wanna cheat and steal from the business, which is why a business owner must always keep close watch on his business, and employees, install CCTV cameras if possible.

No matter the amount you pay some of your staffs, some of them will still want to cheat you, they not going to be satisfied with what you paying them, that’s why when you own a business, you have to monitor your workers properly, you don’t have to trust any of your staff, when it’s comes to money, no one should be trusted.

If you own a business, try as much as possible to involve yourself in the business, make sure your staffs see you frequently, and make sure they properly give account of any amounts that leaves the account, or any amount that enters the account, make sure they are polite to the customers. What kills most businesses is the staffs which you employ to work for you, but with proper management, then you shouldn’t have problem.

[promise444c5]

Controlling the fraud will do nothing to address the real problem of why there are such disloyal and fraudulant employees working there in the first place. Did they become that way or were they like that when they were first hired?

It’s hard to really detect such when employing.. The job itself is a factor but the employees can literally show no sign for years, just small hits that mostly go unnoticeable before finally taking bigger hits. Part of management comes with auditing, which can literally be bypassed if multiple employees are also involved.. But with  external  auditors , the bad ones can be exposed early , or at least curb  before further damage , won’t still eliminate the risk totally.

[Synchronice]

Sometimes the biggest challenge that leads to business shutdown isn't from external competitions around the business environment but from within the workforce.

A business person who owns a company  must ensure to have internal control and structure in your organisation. With a functional internal control, employees display best practices, discipline and solemnity with how they dispose their jobs, resume and attend to work on time etc. Internal financial theft and misconduct are detected asap, then reducing the risk of collapse of the organisation from internally which are related with employee fraud.

One of the biggest and the most real reason of business failure is the fact that HRs often employee wrong people. And bosses too, when they employee their relatives or close friends. Instead of having a pure competition when choosing employees, they choose the ones with connection and the importance of skills & knowledge becomes the second on the line.
Besides this, sometimes companies don't value good employees and when someone does something well, they try to give them more job, which causes burnout while the employee that does less, still gets the same salary and one man does the job of others. This is where many businesses make mistakes and fail.

[Crypto_Timothy]

Man a good structure is everything to a progressive business, because with a good structure, you're certain your business with grow even without being right there, because of that structure, the business still functions. Structure basically creates consistency and direction, it ensures that roles are clearly defined, systems are in place and everyone understands how things should operate. Without structure, many businesses become too dependent on one person and once that person steps away, operations begin to slow down or completely fall apart.

A business should be built to run as a system, not just around the efforts of the owner. Processes, documentation, leadership and accountability all play important roles in creating stability. Doing all these makes growth much more easier especially as the foundation is strong because the business can adapt, scale and also continue functioning effectively even as it expands..

[Dunamisx]

Sometimes the biggest challenge that leads to business shutdown isn't from external competitions around the business environment but from within the workforce.

Attack could come upon your business from any angle, the owner is the one that will be more deliberate about how he could secure his business and maintain it in other to keep it running, try to set some rules and guidelines for people to use when you employ them as your employee, restrict them to some certain extent on areas that has to do with financial handling or management, have experience in the same thing you do so that they won't take advantage of you for exploit.

[LastKiss]

Sometimes the biggest challenge that leads to business shutdown isn't from external competitions around the business environment but from within the workforce.

Attack could come upon your business from any angle, the owner is the one that will be more deliberate about how he could secure his business and maintain it in other to keep it running, try to set some rules and guidelines for people to use when you employ them as your employee, restrict them to some certain extent on areas that has to do with financial handling or management, have experience in the same thing you do so that they won't take advantage of you for exploit.

Yeah, being a business owner is not easy cause we need to be prepared for any kind of problem that could harm our business. That’s why, as owner we create rules for our employees but unfortunately, it’s human nature for some people to violate rules that have already been set.

Employee fraud can also happen when business owners do not pay their employees a fair or minimum salary, especially when the employees have worked there for a long time. This can make them think about either finding another job or committing fraud. However, committing fraud is definitely not the right answer especially for employees who were raised with good values and are not used to doing dishonest things.

[bubilas]

Sometimes the biggest challenge that leads to business shutdown isn't from external competitions around the business environment but from within the workforce.

A business person who owns a company  must ensure to have internal control and structure in your organisation. With a functional internal control, employees display best practices, discipline and solemnity with how they dispose their jobs, resume and attend to work on time etc. Internal financial theft and misconduct are detected asap, then reducing the risk of collapse of the organisation from internally which are related with employee fraud.

And this is an extremely difficult topic that can be discussed a lot, first of all, it is better to conduct any business without friends and family initially, to divorce by hiring or your wife as a boss, because I think this is the only relative who, like you, will be interested in the result. If, for example, you hire a brother or friend, they can mess around, or suddenly demand a vacation, setting up your business with such actions. And if you don't let them go, they will be offended and the family connection will interfere with legally correct actions in such a case.