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Tom Muleya-Fraud Insight
No matter how good the corporate infrastructure put in place to curb fraud and cybercrimes may be, there remains serious leakages when the company has among its workforce bad staffers.
It has been said that human beings are the weakest link within any security system.
Cases involving employee theft and cyber fraud are now common. The very people who are in positions of trust are increasingly becoming perpetrator of business crimes.
Some examples of employee theft and fraud include;
Receiving payment from company clients in US dollars and then replacing the money with Zimdollars at bank rate.
Giving customers a personal account instead of company account. Money for supplies is then deposited into the personal account, thus prejudicing 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 money supposed to be banked in company bank.
Unlawfully logging into the company’s bank account and transferring corporate funds to fraudulent accounts.
Employees are motivated to steal from their employers when they perceive an opportunity and a low chance of detection.
This actually arises from gaps or weaknesses in a company security policy with regards to security controls and punishment for breach of contract.
For example, some companies for fear of bad publicity from their clients do not even report frauds. Such kind of attitude makes the environment fertile for breeding of criminal acts by staffers.
To minimise theft and fraud by employees , employers should consider the following measures;
Ensure that they recruit staffers with no criminal records.
Carry out thorough background checks and proper vetting prior to recruiting for vacant posts within the company.
Develop a security mindset. This will always keep them and alert to the threats on company finances and assets company assets.
Ensure that their systems do not present an opportunity of committing fraud.
Put in place a sound company security policy to minimise incidences of theft and fraud.
Ensure timely reconciliation of financial transactions as this will assist in early detection of theft and fraud.
Carry out periodic forensic audits to check for compliance and detection of criminal acts by employees.
Put in place and sustain a whistle-blower system for tip-offs on criminal activities by employees.
Reward good behaviour. Employees need appreciation for good performance.
Be wary of employees who all of a sudden, live a flashy life and accumulates unexplained wealth. Life style audits may be implemented.
Report all crimes committed by employees to the police for investigation and prosecution of offenders.
Get empowered by Fraud Insight and be part of a solution to workplace thefts and frauds.
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.Feedback: WhatsApp line: 0772 764 043, or e-mail:[email protected].
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