No matter how many protective measures your company takes, you can never completely eliminate the risk of crime against employees. That's why many businesses take out loyalty and crime insurance to minimize potential losses due to theft, embezzlement, counterfeiting, fraud, or other criminal activities. The ACFE has published its Report to the Nations for the past 25 years, which studies the cost of occupational fraud to companies and government agencies around the world. If you haven't already done so, it's important to create separate bank and credit card accounts for your personal and business life. Additionally, Nationwide offers insurance policies and resources to help protect businesses from identity theft and computer fraud.
For small businesses, it may be more efficient for one person to handle mail, record and deposit checks, and reconcile bank statements. It's also important to make it easy for employees to anonymously and confidentially report any suspicious activity that could indicate labor fraud by their superiors or co-workers. Data protection software can be used to record network activity and periodically check log data and audit logs for suspicious activity. Manufacturers are highly susceptible to the theft of materials and finished products, while service companies such as architectural and engineering firms are the most vulnerable to embezzlement, theft, and other types of fraud. To protect your business from these threats, it's important to get an extra layer of protection offered by loyalty and crime insurance. Your property and accident insurer or a local business association can offer an employee training program on crime and other risk management tools. When employees know that their employer is paying attention to fraud and theft, they will be less likely to be involved in them.
By taking a no-tolerance approach to employee crime, overseeing the company's finances, and encouraging co-workers to be aware of suspicious activities, you can reduce the chances of fraud, embezzlement, and theft.