Skip to main content

Train employees to help stamp out fraud






If your company is tired of being a fraud target, it’s time to train employees how to recognize and uncover unscrupulous activities — before irreparable damage is done. Here’s how.

Enlist an expert

A forensic accountant can conduct on-site, broad-based training for employees in the form of live presentations. This expert might use role-playing to help staff understand the various forms fraud can take, and how perpetrators think and identify their victims’ vulnerabilities and weaknesses.

Specific antifraud education can be provided based on employees’ departments and positions.

For example, warehouse workers might be trained to spot shipping and receiving scams. Managers might learn how to verify expense reimbursement requests and documentation.

Hot topics

Some of the topics that might be covered in an employee fraud presentation include:

Payroll theft. This comes in many forms, including paying phantom employees; manipulating time records; making and accepting unapproved pay rate adjustments; creating and accepting extra bonus or payroll checks; and committing W-2 or withholding fraud. To beat thieves, managers and employees working with payroll need to observe internal financial controls, such as keeping a close eye on payroll-related records.

Cyberfraud. Almost nothing employees do poses a greater fraud risk than using computers and mobile devices. Phishing, social engineering and other techniques are designed to trick them into revealing company, customer and other confidential data or providing access to your network. They need to learn how to keep information safe by handling email carefully, changing passwords often and updating security software when required.

Loan scams. Thieves call businesses offering loans at low interest rates, often asking for an upfront “processing” or “application” fee. Legitimate lenders, however, don’t require payment in advance of approving loans. Fraud experts educate employees to check lenders’ validity and get loan terms in writing — including the payment schedule and interest rate — before signing documents.

Fraudulent charitable solicitations. If businesses aren’t careful, charitable donations they think they’re making to the police or fire department or other worthy causes may end up in someone else’s pocket. Employees can be taught to check with charity watchdog organizations and the IRS to ensure an organization is valid and tax-exempt.

Tailored presentation

Your business can avoid a lot of headaches and protect your bottom lines by calling a forensic accounting expert to provide antifraud training. Contact us to discuss your specific employee training needs.

© 2018


Popular posts from this blog

Tax Cuts and Jobs Act (TCJA) - Impact on Tax Exempt Organizations

The 2017 Tax Cuts and Jobs Act that was enacted late in 2017 made several changes to the tax laws affecting tax-exempt organizations, including a new Unrelated Business Taxable Income (“UBTI”) tax rate at a flat 21% for any UBTI over the $1,000 standard deduction.  Caution:  These changes will make some nonprofit organizations pay federal tax that have never been taxpayers in the past.

For more information see our client bulletin:

Bulletin

Preventing business identity theft: 5 tips

Identity theft isn’t just a consumer problem. Criminals steal the identities of businesses, too. In addition to filing fraudulent tax returns, criminals assume the identities of companies to apply for credit, impersonate authorized users and empty bank accounts. Here are five ways you can reduce the chance it will happen to your business.

1. Protect confidential documents

Secure sensitive paper documents such as financial statements, invoices, bank statements and aging schedules in locked file cabinets. Store digital files in secure, password-protected locations.

2. Shred documents you no longer need

When you no longer need sensitive paper documents, destroy them using a cross-cutting shredder. If you need to shred a significant volume of paper, hire a service to destroy documents on your premises.

3. Don’t drop your guard online

Thieves use malware to infect computers and gather sensitive data. They also create fake websites that trick employees into entering login and password i…