Strategies for Embezzlement Prevention
Around $400 billion is lost by businesses annually due to theft and embezzlement, which also causes more than half of company collapses. Employers may, however, create plans to fight these white-collar crimes. The strategies for preventing embezzlement are as follows:
1. Understanding the Scope: The first step towards embezzlement is when someone who has the power to look after another person’s money or property betrays their trust. It seems logical that thoroughly screening potential hires is one of the first things a business can do.
2. Thorough Screening: Apart from performing extensive background investigations, personality tests used to evaluate character qualities may also highlight unwanted actions.
3. Security Measures: A program of security and surveillance, particularly when run by an impartial third party or a specialized risk management team, may also serve to discourage corporate fraud.
4. Internal Controls: These risk managers can set up internal controls that track actions and permit anonymous reporting of questionable activity. They can also carry out recurring audits that reveal misappropriations.
5. Transparency and Zero-Tolerance Policy: Early identification aids in loss mitigation and safeguards the clientele, brand, and business of the organization. Employers need to be transparent about their zero-tolerance stance on unlawful activities like embezzlement and the repercussions of violating it.
6. Promoting a Culture of Vigilance: Every business should encourage its staff to be watchful and report instances of misconduct by fostering an environment of honesty and justice.