More than half of Canadian companies report being victims of fraud — and their own employees are the perpetrators 60% of the time. Take this true/false test to learn whether you’re doing enough to safeguard your business from your own staff.
Answer true or false to the following statements.
1. Conducts extensive pre-employment background checks that include criminal record searches.
2. Builds awareness of the importance of loss management to the business and how much losses hurt the bottom line.
3. Clearly states and acts upon its policies on theft and the misuse of company resources.
4. Provides effective (perhaps confidential) means for employees to report suspected cases of fraud.
5. Employs loss-prevention measures such as closed-circuit cameras and restricted access to sensitive areas and information.
6. Applies its anti-fraud measures equally to all employees, regardless of rank or seniority (because senior managers are responsible for the majority of fraud).
7. Requires two signatures, including one from a senior partner or officer, on all cheques.
8. Disperses responsibility among employees for reconciling financials (e.g., outgoing invoices to incoming cheques).
9. Has its books audited annually by a certified external accountant.
10. Offers the services of a professional counselling agency free of charge to any staff who have drug or alcohol problems.
Give yourself one point for every “true” response. The higher you score, the safer your company is from internal theft.