Fraud Prevention At Work.

There are the obvious and the not so obvious signs of fraud. Fraud within the workplace can equal sham behaviour by people stating or implying that they are what they patently are not. Imposters; who through their slick working methods, can really cause detrimental financial imposts against their employers. Businesses need to formulate certain workplace policies and practices that emphasize fraudulent behaviors are unacceptable - make staff responsible for their actions. Early prevention outweighs an expensive mop-up later.

Fraud prevention measures could/should include a Business Code of Conduct where the formulated workplace policy relates directly to employee practices. Prior to starting work a new member of staff would be required to read and sign the document - as an acceptance of his/her responsibilty towards his new place of work. This policy and the subsequent work practices would need to cover all areas of potential fraud while stressing expected employee behaviors. For example for a positive identification of the new employee a police check would be required; a potential employee would need to provide a specified number of referees, references and of course a specific number of living identity proof documents i.e. a driver's license, educational certificates etc all required as positive proof of identity. Naturally these proofs of identity documents would then need to be examined and their honesty assessed. The burden of proof would lie with the employer who if they didn't have the manpower to follow through, could outsource this requirement with the clear knowledge that they are doing everything in their power to avert possible fraudulent behaviors in the future.

I remember organizing a police check on someone applying for work in a school. The police check revealed that this person was a convicted pedophile. Results -this check ensured that this person was not going to be placed into a working role whereby he/she could be tempted into a new crime and also that the company I was working for did not have to face a possible court case sometime in the future. The person had paid for his crime so he was not going to be discriminated against rather he was then better placed within his work environment.

Another preventative measure entrenched into the employment process could be that the company limits the giving of gifts and entertainment to their employees. Particularly if an employee could possibly be influenced via the expensive wining and dining process and the receipt of unsolicited gifts directed to his home from a potential contractor hoping to sway the final results in his favor.

On this basis the Code of Conduct policy could highlight that: • Any gifts over the value of say $25 had to be reported to the Security or Human Resources Officer - someone outside the direct influence of the particular workplace. • Any meals with a potential contractor could not take place if there was a Tender process currently in place • Maybe a process of sharing could be instigated whereby any gifts could be put into a common pool to be shared with all staff members. More measures • Every employee would be required to sign a non disclosure clause to protect the company's intellectual property. • Every employee would undertake to protect the company's assets, i.e. acquired knowledge, silent business partners, budgetary matters etc.

In Information Technology there are many programs designed to pick up and report on employees using their work time to fraudulently visit e.g. porn sites or working a second job online - the idea here would be to advise staff and personnel about the I.T. reporting systems and also provide limited online access. Of course there are also outside threats to contend with i.e. hacking for hacking sake; hacking to gain insider knowledge, deliberate insertion of viruses, hacking to gain knowledge to use to discredit or embarrass the company. So the obvious steps would have to be taken to protect the company's assets. (Virus checkers, firewalls etc.) A company could be particularly vulnerable if for example they were about to publicly list on the Stock Exchange.

Then there are disgruntled employees who can make waves by leaking potentially damaging information. Or those who see themselves as white knights or whistle blowers. - All fraudulent behaviors. A way to ensure a happy workplace is know or show no favors to any employee; deal with everyone in the same way; tolerate no bullying, and have strict guidelines to deal with disgruntlement. A fair workplace equals more loyalty and less fraud.

copyright anne a. gallagher