Dealing with employee theft and fraud

When dealing with employee theft and fraud, there are steps employers can take to safeguard their business and recover the loss.

Employee theft and fraud is often perpetrated by a trusted senior employee. It can take many forms.

It may involve fictitious suppliers, inflated supplier invoices, sham invoices, inventory theft, secret payments, fraudulent payment of money to accounts and the overpayment of employee wages and entitlements. The misuse of sensitive business information, intellectual property and diversion of business may also occur.

Typically, in a misappropriation matter, the perpetrator exploits a gap in the system that is lacking management overview and review. The manipulation of data and false reporting to hide the activity often occurs. The fraud may take place over a long period, initially at irregular intervals and for smaller varying amounts that increase over time.