Know Your Employees It can be hard to consider the possibility of crimes committed by your staff, but embezzlement and other internal fraud are an unfortunate reality. Often they’re crimes of opportunity that exploit a lack of internal controls. Take these steps to help prevent such losses: • Thoroughly check references of all job applicants to confirm employment dates and spot time gaps on resumes. • Perform background checks on employees who will have access to your financial accounts and sensitive company information. • Have a system of dual controls for blank checks, invoices, accounts receivable, and online payments. To help maintain accountability, separate employees should issue checks and reconcile bank statements. • Check all payments against invoices to confirm they’re legitimate and that the services were authorized. Beware of Phishers Be wary of any mail, telephone, or email request for verification of your business information. This may be a “phishing” scam to gain access to confidential information. Here are ways to avoid such scams: • Educate your staff about phishing and adopt a policy that all outside inquiries about your company be referred to a principal or senior executive. • Don’t respond to requests to verify the identification number on office technology like copy machines. This information can be used to send fake invoices. • Review all invoices before payment to confirm that the services were authorized.
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