The national economy is experiencing a large resurgence as the recovery from the Covid-19 recession gains steam, but many businesses and individuals are still not seeing gains of pre-pandemic levels. As companies find more ways to streamline activity back to normal, their employees are left to deal with continued hardships. Do you own a small business here in Missouri? You may be particularly vulnerable to many schemes that result in loss.
Serious Instances We Have Noticed On The Rise:
Employees have now devised many different ways to skim and outright steal from their employers, as more and more individuals pushed to the brink are taking matters into their own hands. Here are a few of the ways that businesses have reported back to us here at Alexander Insurance of St Charles regarding their recent losses:
- False Vendor Accounts are set up from within by dishonest employees who then invoice and collect profits for labor and goods that are not tangible.
- Check Scams Of Various Types become much more elaborate, as company checks are made out for the employee’s gain. Even though plastic transactions have begun to take over, company checks are still widely used for many industries, providing a means for employees to take advantage of you.
- Payroll Fraud has risen exponentially with encryption and hacking becoming more widely-known skills. After “ghost” accounts are initiated, the criminal then inflates their own salary, a crime that was once easier to spot within the confines of a small business.
- Reimbursement For False Expenses: In this damaging and hard-to-track scam, reports are generated for expenses such as travel or equipment, and the employee receives a credit for incidentals and beyond that never took place. This is particularly dangerous when employees capitalize on inexpensive items and then up the frequency of transactions for profit.
Proactive Steps to Deter Short and Long-Term Loss:
We are here to help you with complete and adequate insurance coverage for the various misfortunate events that can happen when your employees choose to eat into your profits with dishonest actions! Here are a few tips to play “guardian at the gates” and try to alleviate any of these occurrences before it’s too late.
- Double Up on Vendor Verification: internal help or a hired 3rd party can assist with control, reimbursement checks, and setup for initial vendor acceptance.
- Organize a Digital or Call-in Tip Line: In some instances employees are not as fast to react if they feel they don’t have anonymity. If one of your honest workers sees something, this line of communication makes it much easier for them to speak their conscience and feel safe.
- Scrutinize Backgrounds Heavily: This is one area where you don’t want to cut corners, as “birds of a feather” really do flock together. If any criminal activity has been committed by any of your applicants, they may be prone to financial crimes and other hazardous behavior.
- Hold Individuals Accountable Across The Board: Sometimes when hands on deck become limited due to the state of the nation, the line between separate positions is blurred a bit. It is very important to not procure the power to authorize payments without a senior employee’s discerning consent.
There are not many types of businesses in existence that can avoid falling prey to the different ways employees now scheme to take what is rightfully yours. Talk to us here at Alexander Insurance today, and we will assist you with a plan to leave you in a position that makes for a secure, profitable, and memorable summer season.