The Law Offices of Sheftall & Associates
Call Us Today 904-638-5862
view our Practice areas

Preventing in-house fraud as a business owner

Whether you operate a small or large business, your company can become the target of a hacker at any given moment. But, while many business owners are focused on exterminating external threats, in-house fraudsters can be just as detrimental as an attack from the outside.

How can you prevent members of your own staff from financially exploiting your business?

Implement mandatory background checks

You can’t always rely on your gut feeling about an applicant’s history. Omitting background checks from the hiring process can open the door to someone who intends to compromise your business. Experts suggest researching the past seven years of an applicant’s criminal record to prevent fraudsters, hackers and criminals from being given easy access to your finances.

Analyze an applicant’s credit history

“Desperate times call for desperate measures” is a saying that can ring true when it comes to an employee who is financially strapped. If a person is hurting for money, they may do things that are seemingly out of character. Analyzing their credit history may help to predict any future problems that could arise. For example, if an applicant has filed for bankruptcy, they may be more tempted to engage in fraudulent activity to make ends meet. Before you can conduct such a search, however, you will need to have the applicant sign a release to grant you authorization to access their fiscal history.

Limit access to the company credit card

Many businesses will grant their employees access to the company credit card to cover work-related expenses. However, when your staff members are given an unlimited budget for expenses, they may spend more money than they would if it came out of their own pocket. A preventative measure that you could take would be offering to reimburse staff after the fact for such expenses or only allowing senior level employees to authorize transactions.

Keep a close eye on payroll

It can be a good idea to keep a close eye on your financial accounts and the payroll system. You can hire someone to monitor the accounts to see if there are any red flags or do this on your own. In addition, you’ll also want to be hypervigilant about payroll entries. Employees may be untruthful about the number of hours they worked and can be easily overlooked. You may want to consider adopting a payroll system that allows you to preapprove time cards before employees can receive a paycheck.

It’s hard to imagine a member of your own staff compromising your finances, but, unfortunately, it isn’t an uncommon occurrence. Taking precautionary steps may be able to stop a coworker from becoming a perpetrator and help you to take back your business.

No Comments

Leave a comment
Comment Information
Schedule A Consultation Today

Contact The Firm In Jacksonville, Florida

Personal injury clients receive free initial consultations. To speak with the Law Offices of Sheftall & Associates, P.A., reach us by phone or fill out the form below to send an email message.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy