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Understanding And Avoiding Employee Fraud

July 23, 2015

Many businesses end up being the victims of employee fraud and misconduct, and with such a high number of companies located here in NYC/Long Island, it's only natural that many companies here will experience this problem as well.

Surprisingly, many businesses don't even realize that they're being taken advantage of until long after the money has been taken. Consider a couple of Long Island and New York examples if you're not convinced:

  • Long Island resident Onesta Reyes was arrested in 2013 for stealing more than $300,000 from a contracting company she worked for as a bookkeeper.
  • Another bookkeeper – this one Kerri Dewirst, employed by a Long island oil company – stole nearly half a million dollars before finally being caught.
  • Isaac Zucker plead guilty to embezzling more than $600,000 from his Woodmere, New York synagogue in February of 2013.

In other words, no organization is safe from this problem and every year companies literally go out of business due to loss from employee fraud. So what can you do to stop it? Here are some options.

  1. Know the red flags
    Things like poor record-keeping, employees living lavish lifestyles that they shouldn't be able to afford, and employees who seem to have close contacts with particular vendors are all signs that you should be looking for.
  2. Use good software and other tools
    Internal monitoring software can be open or hidden, but either way it's well worth investing in. There are programs today designed to do nothing more than identify potential fraud going on in the workplace, and using these tools will help your business substantially.
  3. Run background checks
    Let a professional private eye firm handle it, or use your own software and processes, but either way it's important to run detailed, accurate employee background checks to ensure that your company hires the right team members.
  4. Trust in the pros if you still have doubts
    You can always let an investigation firm run some checks into the way that your business is operating, and by looking at various things a good private eye can usually identify potential problems and help you understand what to watch for.

Your company deserves all the benefits and advantages it can use, and while you're often focused on external risks and strategies you can't afford to ignore what's going on internally, either. Take the time to learn more about stopping employee fraud and misbehavior, and you'll notice that your bottom line increases as a direct result.

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