Let the Employer Beware!

Let the Employer Beware!

Unfortunate but true — if you are a small business owner you must monitor your employees carefully. They might be damaging your company without your even realizing it.

“Approximately 70% of cyber attacks on enterprise systems are believed to be perpetrated by trusted insiders.”

— National Strategy to Secure Cyberspace, 2002

A big problem for small business is lack of effective preventive measures. In a small business each employee wears many hats,so precautions are not in place to prevent things like embezzlement, check fraud, and falsification of financial records. Small businesses may also be vulnerable to computer crime—having sensitive data stolen or destroyed by trusted insiders. Small companies should also be extra cautious about theft of merchandise and false transaction records.

Here are some tips to help protect your business from internal fraud.

Control the checks

Although you don't have to be the sole check-writer, it is a good idea to be involved in the check-writing process. If someone else is writing the checks, be sure that you are the one who is signing them.

Limit your employees' power

If you do not have time to sign every check written, make sure that the check writer and check signer are two different people. This will help ensure a system of checks and balances within your company. Furthermore, you may require that large purchases require your signature.

Examine your bank statements

This is a quick and easy way to see where your money is going. A bank statement could help you easily spot suspicious transactions.

Count your money

Routinely check your account balances. If there is significantly less in the account than you expected, it may be time to do some investigating.

Pay attention to your employees

Often it is the most trusted employee who turns against your business. Be aware that anyone in your company could potentially steal from you. Pay close attention to each and every one of your employees.