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Tom Muleya-Fraud Insight
Cases involving employee theft and fraud are now becoming a common phenomenon.
The very people who are entrusted with custody of company trust property are violating principles of good stewardship and unlawfully rewarding themselves with their employer’s funds.
According to a survey made by the writer on cases received for investigation by Commercial Crimes Division, culprits ranging from managers, accounts clerks, cashiers and sales representatives appear more frequently in this supply chain theft and fraud.
Some examples of employee theft and fraud are;
Receiving payment from company clients in US dollars and then replacing it with Zimdollars at bank rate.
Giving company customers his personal account instead of company account. Money for supplies is then deposited in his account to the prejudice of the company.
Receiving company money from customers and converting it to personal use.
Generating fraudulent receipts for company payments.
Converting to personal use company payments.
Unlawfully logging into company financial account and transferring money to fraudulent accounts.
Employees are motivated to steal from their employers when they see an opportunity and a low chance of detection.
This actually arises from gaps or lapses in a company’s security policy.
For example, some companies for fear of bad publicity from their clients do not even report cases of fraud and theft occurring within the institution, but will just dismiss the employee without prosecution.
Such an attitude by the company makes the environment fertile for criminal acts by employees who would prefer losing the job but go home with their ill-gotten loot.
To minimise theft and fraud by workers, employers should consider, among other things, the following measures;
Ensure that thorough background checks are made and proper vetting is done prior to recruitment.
Develop a security mindset. This will always keep them alert to the threats on finances and assets.
Ensure that there is a sound company security policy, sufficient enough to minimise incidences of theft and fraud.
Ensure timely reconciliation of all financial transactions.
Ensure regular forensic audits are done to check for compliance and detection of criminal acts.
Establish a whistle-blower system for tip-offs on criminal activities.
Set up a system of rewarding f good behaviour; employees need appreciation for good performance. This makes them have a sense of responsibility.
Be wary of employees who all of a sudden begin to live a flashy life and accumulate unexplained wealth. Life style audits may be implemented.
Ensure that all crimes committed by employees are reported to the police for investigation and prosecution of offenders.
Get empowered by Fraud Insight and be part of a solution to fraud and theft involving employees.
Tom Muleya is a Detective Assistant Inspector working under CID Commercial Crime Division (Northern Region), Harare. He is also a member of the National Cyber Security Taskforce, Zimbabwe. For feedback: 0772 764 043, or e-mail:[email protected].
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