The risks of employee fraud
Employee fraud is a very real problem faced by many businesses across Australia. In fact, several cases over the past decade have led to retailers Down Under losing in excess of $1 million, according to a February 25 release from Inside Retail.
Due to the high losses experienced during incidents of employee fraud, it can be difficult for small to medium enterprises to recover from the financial burden.
It is therefore important to ensure you can identify and deal with cases of fraud within your organisation before the financial loss impacts your business’s ability to stay afloat.
Fortunately, there are a number of behavioural signs you can watch out for to help identify those employees potentially engaging in fraud.
This includes recognising staff members who frequently work outside of regular business hours, live beyond their financial means and are reluctant to train or work with others.
You are also more likely to discover employee fraud if you invest in external accountants and other professionals who can provide an unbiased report on your business’s bottom line and operations.
If you believe a fraudster is working within your midst, it is very important to follow correct procedures to help protect your business. While you may be keen to fire the employee in question as soon as possible to minimise further loss, doing so could set you up for an unfair dismissal case.
It is crucial to collect all the necessary evidence and to enlist the services of trained professionals to perform investigations to avoid an employee taking your business to court for invasion of privacy or wrongful termination.
To help protect your organisation from the legal costs involved in safely uncovering fraud and terminating employees, it is important to ensure you hold employment practices liability cover as part of your business insurance in Perth.
For more information, contact Bruce Insurance today. As a dedicated business insurance broker, Bruce Insurance can offer tailored policy solutions for organisations of all shapes and sizes.