Farmers superglue cow's udders to get ahead in competition - do you know how to spot fraud in your business?
In a bizarre case of extreme competition, farmers in the UK have resorted to a little 'cosmetic enhancement' for their prize cows - with superglue! The craving to win (whether it's blue ribbons, trophies or market share) can skew people's morals and lead to fraud. Here's how you can spot fraud in your business...
It may seem crazy to superglue a cow's udder to make it appear fuller, but that's what people resort to in the name of winning, reports The Telegraph
. Your business probably doesn't deal with prize cattle, but let's face it, fraud is always a nagging concern.
Watch out for these telltale signs of fraud in your business, as revealed by Labour Law for Managers
Business fraud clue #1: The same person is in charge of a large chunk of invoicing and payment processes
This is usually a person in accounts whom you trust implicitly, so you never have to 'worry' about checking their work. Fraud is often carried out by people you least suspect! If one person deals with money going in and out, perform a surprise inspection before they run off with the company's money.
Business fraud clue #2: Inventory is delayed, done irregularly, or there are no formal checks between identifying obsolete material and disposing of it
Even if you have surveillance in your company, it's impossible to keep an eagle-eye on each employee handling each piece of stock. But beware irregularities when doing inventory – Employees who help themselves to stock tend to try and sabotage inventory so they're not caught out. Absenteeism on inventory days is also suspicious.
If your company doesn't have an external check of obsolete material, workers can mark good stock as obsolete or surplus and 'dispose' of it – by selling it by themselves!
Business fraud clue #3: An employee lives beyond his means
You know how much your employees earn, and unless they have some huge source of secondary income, living way beyond their salary bracket is quite suspicious. If your employee is living a flashy lifestyle and you know he couldn't afford it on his salary, look carefully into the opportunities he gets to commit fraud at your company.
With these business fraud clues in mind, you can spot fraud a mile away, and bring the perpetrators to justice before they take down your business – or your chances at the blue-ribbon.
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