From screening to business insurance in Dallas Texas, here’s how you can protect your business from employee fraud.
While a good employee can be your business’s biggest asset, a bad employee can be absolutely devastating to your company. Unfortunately, about 64% of small businesses experience employee fraud at some point during their operation. With fraud being such a major problem, it’s important that you learn more about fraud and find out how you can protect your business from it. From employee screening measures to having business insurance in Dallas, Texas here are some strategies you can use to protect your business.
Types of Fraud
The three most common types of fraud are asset misappropriation, corruption, and financial statement fraud. Of the three, asset misappropriation is the most common. This is because any employee at any level of the company can misuse company resources. Common instances of asset misappropriation include stealing company goods, forging checks, and using company vehicles for personal use. Corruption generally occurs when an employee accepts bribes or offers unauthorized discounts in exchange for payoffs. Finally, financial statement fraud is committed by an employee who handles the business’s finances. This occurs when they record fake revenues, exaggerate assets, and conceal expenses.
How to Protect Your Business
There are several things that you can do to protect your business from employee fraud. For instance, when you are hiring a new employee, you can employ a strict screening process. Conduct a thorough background check and make sure you follow up with past employers. Your vigilance could reveal previously undisclosed criminal activity and previous involvement with fraud. Another way to defend your business from employee fraud is by conducting spot checks of your employees’ work. Doing surprise inventory inspections or random reviews of your company’s books could uncover any fraudulent activities. Finally, having the right business insurance could protect your business if one of your employees does commit fraud. Protection against employee fraud might not be covered under a standard business insurance policy, so make sure you speak to your agent to find out how you can get covered today.
Try out some of these strategies to safeguard your business from employee fraud. If you are looking to find the right business insurance in Dallas, Texas, then trust the professionals at Champion Commercial Insurance. Our dedicated team is ready to assist you with all your insurance needs. Contact us to get started today.