According to the Labour Law for Managers Loose Leaf Service, fraud happens when an individual misrepresents the truth and this causes an injustice to another individual. In simple terms, someone commits fraud when they commit an unlawful act involving a lie with the intention to harm another.
It's crucial that you're aware of indicators of fraud in your workplace, especially nowadays where employees have sophisticated technology at their disposal which can be abused to take money from you.
If you ignore these warning signs, in the long run fraud could render your company bankrupt.
Look out for these ten fraud warning signs!
The Labour Law for Managers Loose Leaf Service advises you to act on the following situations immediately as they could indicate fraud.
#1: Employees who lead excessive lifestyles or live beyond their means.
#2: Employees who've got gambling, alcohol or drug addiction problems.
#3: Employees that have close relationships with suppliers or deal exclusively with certain suppliers.
#4: Employees with a poor credit rating, judgement debts or criminal records for fraud or theft.
#6: An employee who refuses a promotion. This may indicate that she doesn't want others to have access to what she's doing.
#7: Too much trust placed in key employees and limited segregation of duties.
#8: No independent checks on reconciliations and payments.
#9: No clear lines of authority or responsibility.
#10: No enforcement of authorisation procedures.
Remember to never let trust replace the controls in your company. Lookout for these fraud warning signs and act on them promptly.
I would like to enquire whether an employee can insist on legal representation during an incapacity hearing. [see the answer]
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