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You suspect fraud in your company - now what do you do?

by , 03 July 2013
Let say your auditor comes across an irregularity that looks suspicious, like fraud being committed in company, or your bank phones you and reports an allegedly fraudulent transaction on your company bank account. Would you know what to do in these situations? Read on to find out what steps you should take when you suspect fraud has been committed in your company.

According to the Labour Law for Managers Loose Leaf Service, when someone commits fraud they commit an unlawful act involving a lie with the intention to harm another.

In a business, it could be your employee taking money from you and disguising it so well that you don't even know what's happening right under your nose.

What's important is that you know what steps to take when you've seen the signs and suspect fraud is being committed in your company by your employee. This could potentially save you tons of money.

Here's what you need to do you suspect an employee is committing fraud in your company

If you suspect fraud in your company, order an initial investigation to check this and see who may have been responsible.

Once you've established it was definitely an irregular transaction and who made it, you need to investigate him thoroughly. Determine if the suspect could be guilty of dishonesty and if so, what type of dishonesty it is.

At this stage, you're investigating whether there's a need for a disciplinary hearing and also gathering evidence to use at the disciplinary hearing.

Your investigator will probably carry out the first part of his investigation secretly to avoid the suspected employee covering his tracks before all the evidence has been gathered.

To preserve evidence and avoid further fraudulent acts, you may need to suspend the suspect from duty until the investigation is complete. This willhave to be on full pay and you must do it in writing. In addition, give your employee an opportunity to comment on the proposed suspension.

One word of caution, don't consider the investigation complete until you've investigated each and every aspect thoroughly. You don't want your guilty employee to get off at the CCMA because of an incomplete investigation.

After you've gathered all the evidence, you'll then be in a position to decide whether or not you want to institute disciplinary action as well as laying criminal charges. Just make sure any action you decide to take is procedurally fair.

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