4 anti-fraud tips for business owners

By Michael McCormack | February 19, 2013 | Last updated on February 19, 2013
1 min read

Having anti-fraud measures can decrease the amount and duration of employee fraud schemes. Here’s what your business owner clients should do.

  • Establish a code of conduct

    This outlines the ethics of the organization. Many businesses confuse it with a mission statement, but it speaks more to values and rules than your professional objective. Employees should sign this code on a yearly basis.

  • Establish policies and procedures

    This document should include everything from expense filing and acceptable use of the computer, to position outlines (titles and their corresponding roles and responsibilities), to policies around social media. Have employees sign it.

  • Know your “what if…” scenario

    Have a strategy outlining what your business would do if fraud was detected. This includes knowing who you should contact right away and what your first steps would be (for example, putting the employee on paid leave, how or if you tell other employees, etc.). Also, what about your media strategy? Consider discussing this with your employees. Remind them if they make any comments about a former employee or the details of the situation to the media, they could face legal repercussions.

    Business fraud stats

  • Invest in fidelity insurance

    This protects a firm from losses caused by the dishonest acts of its employees. This rider on your insurance policy may allow you to recover money that was stolen, as well as pay for an investigation into the fraud.

Read more tips: 7 tips to fight fraud >

Michael McCormack