How To Spot Fraud Before It Happens

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This is a feature article written by Larissa Thunder for HR Future.

Prevention is the most effective way to combat fraud occurring in your business.

It’s important to ensure you have strong business practices that make it difficult for fraud to occur and, if it does occur, make it easy to detect and address. There are also key indicators that you could have a problem, including late financial and other reporting, un-reconciled and unexplained account balances, rushed system implementations that may help “cover up” the audit trail, and sudden resignations of key staff with access and control over assets and/or reporting. Not all fraud is simple theft of company money. Fraud includes redirecting the companies’ tax deposits, taking kickbacks, buying products not for the company, and the company pays for it, running compensation through Accounts Payable and so forth. Often fraud includes elements of cover up and obfuscation that can lead to a significant delay in detection.

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