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The Importance of Ensuring Fraud Awareness Among Employees

May 14 2020 - The risk of fraud is one of the most significant risks that businesses of all types and sizes are faced with. What most business owners do not realize is that their employees are some of the most powerful resources in terms of effectively mitigating this risk.

Below, we explain why it is imperative that employers have a deep understanding of the dangers and workings of fraud, as well as some tips on training them on what to look out for, and what to do if they notice something suspicious.

Employees Can Stop Fraud Before it Impacts the Business

If an employee has been adequately trained to identify possible instances of fraud, they will report their suspicions quickly to the relevant individuals who can look into it before it becomes a significant problem for the business. This quick detection could save your company thousands of dollars in the long run.

Teach Employees About the Different Types of Fraud

There is a wide array of different types of fraud, from credit card fraud to check fraud and identity theft. Take the time to teach your staff about these different types and how they are usually committed.

Put Policies in Place

You can prevent fraud from occurring by ensuring that you have done your research and have put comprehensive policies and procedures in place. Train your employees to follow these and ensure that you closely monitor to ascertain whether or not they are being properly carried out.

For instance, if you own a store in the retail sector, train your employees to perform two steps of identification verification before accepting any credit cards from customers.

Train Your Employees in the Workings of KYC

If your business is lucky enough to have KYC working in its favor, it is essential that you ensure that every one of your employees knows how it works. Ultimately, understanding KYC and what it means is just the first step. Employees should comprehend the reasons as to why it is so important, too.

Further to this, despite the fact that KYC technology is extremely accurate, it doesn't mean that they can feel safe to let their guard down when vetting customers. You should always take the time to train them in terms of the type of suspicious behavior to watch out for, both in-person and online, regardless of the technology you have invested.

Donít Forget About Internal Fraud

Most business owners are so worried about mitigating the risks associated with external fraud that they forget about the possibility of internal fraud taking place. The unfortunate reality is that it happens more frequently than one might think. The risk can be reduced by, once again, putting stringent procedures and policies in place. However, it is also important that you ensure that there is a confidential way in which employees can air their concerns relating to potential internal fraud without fearing losing their jobs or running into trouble with HR.

Keep this advice in mind and you can be certain that your business will drastically reduce the chances of falling victim to fraud in any shape or form.


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