Big and small businesses fall victim to embezzlement all the time. There are unscrupulous people in every industry who pose as employees and business partners to divert your company’s profits illegally into their accounts. Though embezzlement is often associated with money, it can include stolen property like your company car, stolen inventory, or important and mostly sensitive data. These thieves usually carry out their operations in simple to elaborate ways. While it may be uncomfortable or stressful to constantly assume that your employees are stealing from you, it can become your reality if you don’t put preventive measures in place. This article will delve into the ways to protect your business from this damaging incident.
Story Stages
1. Get an insurance
The initial step is to acquire business crime or commercial crime insurance. This will shield your enterprise from any losses that will occur due to business-related crimes. It will cover embezzlement, forgery, fraud, and other financial offences. It is essential to be aware that this kind of insurance needs to be purchased separately from commercial property insurance. Ensure you go to the right broker and understand your industry and your unique needs so they can give you the right policy. Working with a professional broker also prevents you from overpaying for an insurance policy and having gaps in your coverage that may make you susceptible to unnecessary exposure, so feel free to consider this.
2. Have a legal and finance professional on your team
The two most important professionals a business needs are an accountant and a legal advisor. When it comes to business crimes, you need a white collar lawyer who can advise you and protect you when trouble arises. They can also educate you and your employees on the dangers of embezzlement and how to spot it. Hiring one might seem expensive, but they are actually a good investment because they save you from spending more money later in an embezzlement case. Whether you are a small startup or a global business, investing in an accountant will ensure that your books are in order and your company is financially healthy. They can also detect if there is any shady activity going on when they inspect your financial transactions.
3. Do background checks
Go the extra mile in your hiring process by performing background checks on contractors and new hires. Most people put down references that don’t exist, so do your due diligence by going through them. Observe their work history thoroughly and find out if they were involved in any suspicious activities in their former workplace. If you are hiring for a high-level or executive position, consider that these individuals might have access to classified information and company funds. With this in mind, tighten your hiring process by including a detailed check according to your business’s background check policy. Avoid using illegal ways to expose the information and make the entire process legal, safe, and fair. You may need to seek the consent of the candidate and get their approval in writing before you proceed.
Managing a company and growing it to make a profit can be a hard job. Avoid getting taken advantage of by applying these tips to protect yourself.
