As much as we would like to not think that this might happen, it does. Financial statement fraud, asset misappropriation and corruption could really cripple your business.  It's been reported that a typical business organization loses up to 5%, each year, to fraud. We're hoping that your business is not a victim to this type of behavior.

Today on the Top 5 at 7:45, I'll highlight 5 signs that those you employ could be guilty of tampering your accounts according to Small Biz Ahead.

  1. Turnovers - We're not talking apple turnovers either. High employee turnover rates in any company is not a good thing, on so many levels. If one department has a high rate of turnover, it's time to investigate. An anonymous employee hotline might be the answer for them to give you tips if they see fraud in your company.
  2. Control - If you have an employee that never takes vacation or a sick day, they could be trying to control their environment and could be guilty of fraud. Recently, a worker was removed after taking a forced vacation. The reason is that they uncovered fraudulent practices. That's why she never took a vacation. When someone else was working her desk, they found what was hidden there.
  3. Change In Behavior - If an employee becomes dependent upon drugs and alcohol, there may be a problem. If they all of a sudden start acting strange, check it out for your safety and theirs.
  4. Change In Their Lifestyle - Divorce, break-ups, children, etc. Or maybe they start living the glamorous life. Fancy cars, new big home, flashy, expensive clothes could be signs that they are partaking in fraud. Just something to keep your eye on.
  5. Debt Problems - It is a good rule, that if someone is in debt, to not let them oversee the cash and deposit boxes. Too much temptation. If they're getting many calls from creditors during work hours, and such like. Many employers are now doing credit checks prior to hiring and employee.

As small business owners, we much all keep a watchful eye on our assets and endeavor to protect them. You certainly don't want to lose that which you have worked so hard for, because someone wanted to steel it from you.

The Top 5 at 7:45 airs weekdays with me, Gary Freeman and sponsored by First Education Federal Credit Union.


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