As a business owner or CEO, it’s important to be aware of the different types of employee fraud and what you can do to prevent it.
Employee fraud is any type of fraudulent activity that is committed by an employee in order to gain some type of financial advantage.
Types of Employee Fraud
It can take many different forms, from using company funds for personal expenses to padding expense reports.
There are many different types of employee fraud, but some of the most common include:
- Expense report fraud: This is when an employee submits false or inflated expenses in order to receive reimbursement for personal costs.
- Timesheet fraud: This is when an employee fakes hours worked or takes longer lunches and breaks than they actually do.
- Compensation fraud: This is where an employee makes an inaccurate claim about a workplace accident or injury to claim compensation. For example, a case we worked on; an employee was suing his employer for an industrial accident at work where he injured his hand. Dolos Investigations filmed the subject opening his van door with the injured hand and driving.
- Payroll fraud: This is when an employee gives themselves a raise or bonus, manipulates their time worked so they get paid more, or uses someone else’s identity to collect a payment.
- Asset misappropriation: This is when an employee steals company assets for their own personal use. This could include anything from office supplies to company vehicles.
- Sickness fraud: This is where an employee submits a false claim for sick pay during absence from work. For example, an employee claimed to have been ‘off sick’ with a bad back. In this instance, Dolos Investigations covertly filmed him doing his weekly big shop around his local supermarket, pushing a full trolley, then loading it into his car. This proved his claim was fraudulent.
Preventing Employee Fraud
To prevent employee fraud, it’s important to have strong internal controls in place.
This could include things like requiring receipts for all expenses, random audits of time sheets, and regular background checks for all employees.
If you suspect that employee fraud is taking place in your company, it’s important to investigate immediately.
An experienced accountant or private investigator can help you uncover the truth and take appropriate action.
A Private Investigator’s Role in Employee Fraud
- Private investigators can help companies with employee fraud in many ways, including:
- Investigating tips or complaints of fraud
- Conducting background checks on employees
- Checking financial records for irregularities
- Interviewing employees and witnesses
- Gathering evidence of fraud through surveillance and tracking techniques
If you think employee fraud is happening in your company, don’t hesitate to reach out to a private investigator. They can help you uncover the truth and take appropriate action.
Dolos Investigations offers employee fraud investigations – get in touch today to find out how to take the first step.
Employee fraud can take many different forms, but it’s important for all business owners and CEOs to be aware of the signs and how to prevent it.
By implementing strong internal controls and being vigilant about investigating suspicious activity, you can help protect your company from this type of crime.
Don’t forget – if you already suspect employee fraud and need help to build a case, get in touch with our private investigator service today.
