How to Protect Your Business Against Small Business Fraud, Embezzlement, and Workplace Theft

Do you have adequate measures in place to protect yourself from the perils of small business fraud, embezzlement, and workplace theft? Far too many businesses don’t realize that the biggest threat to their success is usually standing next to them. In fact, in the world of enterprise, 90% of all significant theft losses come from employees. If that isn’t enough to alarm you, know that those losses lead to more than 30% of business bankruptcies. Investing in preventative measures could represent the best dollar spend you ever make on behalf of your business.

It can feel unnerving to imagine that the biggest threat to any organization usually lurks within, but there are actually numerous rock-solid small business fraud and theft prevention strategies that anyone can roll out fairly simply. Here at Lauth Investigation International, we are proud to provide various large and small business risk assessments, culture audits, employee screening services, and corporate investigations to all in their moments of need. But first, let’s explore what you can do today to protect your business against employees who are anything but team players.

Beef-Up Your On-Site Security Protocols

Sometimes, the physical vulnerabilities of any business are due to a lack of security hardware such as locking doors and CCTV cameras. But at others, they are as simple as managers having gotten sloppy about cash or inventory handling procedures or a lack of strategy when it comes to separation of duties and asset access. 

Sometimes, certain employees have become so much a part of the furniture that they are given free rein to ramp up your risks—intentionally or otherwise. Overhauling common practices, policies, and daily procedures can bring such glaring oversights back into view. If in doubt, an expert risk and threat assessment can be the best way to make sure that every security hole is firmly plugged.

Conduct Comprehensive Background Checks When Hiring

Research has revealed that as many as 85% percent of employers have uncovered a lie or misrepresentation on a candidate’s resume. Some of these deceptions will have been illuminated by background checks, but others will have only come to light when the employee in question revealed their true nature—potentially doing substantial damage in the process. The best way to eliminate bad actors from your workplace is to refuse them entry, and choosing to conduct comprehensive background checks is the best way to achieve this. 

Be Dutiful About Digital and Financial Safeguards

These days, everything that happens within your business leaves a trail—and that reality can be your greatest asset in mitigating risk or it can be an exposed Achilles tendon. The data that is precious to you—whether trade secrets or customer payment details—should always be indulged with the latest cyber security tools and web safety awareness training. 

Meanwhile, access to financial and inventory records should be tightly controlled while every cent on the dollar is accounted for. Make daily deposits and conduct monthly checks to ensure that everything is in order. Access to both assets and the records of them should be need-to-see only, removing temptation from the get-go.

Keep Your Corporate Culture House Clean

If a stranger walked in off the street today and asked your employees how they feel about the place and you as their employer, what do you think they’d say? Corporate culture is a measure of the morale, shared values, and collective goals of any team. When this distinct workplace culture falls into ill health, employees soon stop caring about the wellbeing of the business. 

Some may feel empowered or even justified to commit fraud, embezzlement, or workplace theft, while others will simply turn a disinterested blind eye. So, is your corporate culture fighting fit or in need of a trip to the hospital? A Corporate Culture Audit will reveal all of this and more.
Hopefully, these pointers will help you make great strides in protecting your business against internal threats. However, if you feel you’d benefit from additional support, the team at Lauth Investigations International has your back. From employee screening to corporate investigations, our full-spectrum and tailored services offer all the resources you need to keep your business thriving. Get in touch today to find out more