Preventing fraud

Hamish Mexted Odds & Ends

According to this article in the Dominion Post, “about half of NZ businesses are victims of fraud”.  Whether or not the statistics are entirely accurate I’m not sure.  However the article does highlight the point that all businesses need to be wary of fraud.

It’s stating the obvious that fraud can cripple any business.  The key to preventing it happening to your business is strong internal systems.  This means recruiting well, ensuring no one person has control over an entire process (such as payroll or creditor payments) and building checks and balances into all processes.

Another good way to mitigate the risk of fraud is to rotate the staff responsible for a particular process.  Staff rotation should ensure that no fraud can continue over a long period of time and increases the probability of it being picked up.  The other benefit of rotation is that if a staff member leaves there is someone else in the business who is able to pick up their role.

What you do in your business is critical to ensuring that you aren’t the victim of a significant fraud.  If you believe the statistics it will happen to you – talk to your Chartered Accountant or iif now to plan and reduce the risk.