Fraud can impact on your organisation when you least expect it and often from the least expected staff member.

Does your organisation:

  1. Require face to face interviews with all shortlisted potential employees?
  2. Require reference checks by phone with all referees?
  3. Require Police checks?
  4. Have written employment agreements in place for all staff?
  5. Have a policy and procedure manual for all staff?
  6. Require 2 or more authorisers/signatories for all payments?
  7. Have policies for checking accounts receivable and payable?
  8. Have cash handling policies e.g. counted by 2 people?
  9. Have policies on staff taking leave and not accumulating?
  10. Policy of reporting fraud to the Police?

To avoid being hit by fraud from employees it is important to do checks before you employ someone and to check that policies are in place and being adhered to.

Employment Practices & Policies

  1. Get a written CV.
  2. Get an application form filled out prior to interview.
  3. Do background checks on the information provided.
  4. Interview in person and use a panel – one can watch for body language and reactions while another makes notes.
  5. Have a list of questions (so you cover all the necessary points).
  6. Drill down on answers to see if they are really telling you the truth e.g. ask for examples of how they would handle a certain situation. 
    1. Ask for more details.
  7. Talk to all referees.  Be suspicious if they do not want you to talk to their current employer. 
    1. Have a list of questions.
    2. Ask if they would re-employ.
  8. Consider Police checks and get permission – all now on line and the Police have a MOU to sign.
  9. Have written agreements.
  10. Have clear policies for cash handling, creditor payments etc e.g. at least 2 signatories, authorisations, 2 people to count cash, separate record of payment being received etc.
  11. Have a 2nd person check all payments and look at the source material
    1. If in doubt call the company to check on the invoice.
  12. Regularly check that your policies are being adhered to and treat seriously any breaches of policy.  Depending on the circumstances start with a little chat, if that does not do the trick you need to enforce compliance by taking more serious performance or discipline action as appropriate.
    1. The policies are there for a reason – do not ignore them in practice.
  13. Enforce annual leave provisions.  Often fraudsters do not take annual leave because in their absence discrepancies are uncovered.