Businesses large and small often become victims of insider crime. A CNBC report explained that the problem costs American companies $50 billion each year. The problem is particularly distressing for small and medium-sized businesses, second only to the difficulty involved with recovering from the loss. However, there are several precautions businesses can consider implementing to reduce the risk.
Restrict employee access to computer programs specific to their position or need to use. Change passwords frequently. Limit access to cash, equipment, merchandise, and general supplies. Consider taking inventory of physical items more often than once a year. This way, if shortages are detected, it’s easier to pinpoint when the items went missing. Pay closer attention to valuable inventory, document the disposal of all damaged, outdated, or low-selling items, and implement surprise audits of financial and inventory assets.
Businesses must closely monitor employees responsible for bookkeeping and handling inventory. Establish multiple positions for certain tasks. By dividing up the responsibilities, business owners are more likely to safeguard their assets and increase the chance of identifying potential thieves. For example, the individual who keeps the books shouldn’t be the same person paying the bills or receiving funds. Likewise, employees responsible for receiving merchandise shouldn’t also have the responsibility of discarding or selling the items.
Hire a Security Team
Employees are less likely to commit a crime against a company if they believe they’re being monitored. Businesses might want to consider installing convex mirrors or security cameras that continually monitor in-house activities day and night. Security personnel from one of the top security companies in San Jose are less likely to be biased when it comes to reporting employee crimes. In addition to providing ongoing surveillance, security guards can be used to restrict company access.
Employees need to know the business policies and procedures concerning fraud and theft. The company should establish a code of conduct and ethics. Employees must be informed of the disciplinary actions the company plans to enact should someone violate the policies. Each employee should be expected to sign a statement verifying their receipt of the information and their understanding of the policies. Businesses should consider providing annual training sessions that further explain expectations and descriptions of unacceptable behavior.
Allow Anonymous Reporting
Along with providing information regarding the company’s expectations related to fraud or theft, businesses must also encourage their employees to report any suspicious acts they might notice. If an incident comes to the attention of personnel, an investigation must be undertaken regardless of the severity of the crime.
Potential employees should undergo drug testing. Individuals with substance abuse problems are more likely to find illegal ways to support their habits. Companies must also perform background checks on potential new hires. Someone with a criminal past related to fraud or theft doesn’t make a good candidate for employment.
Businesses that need dependable professional guard services in San Jose have put their trust in ADS Guards for almost twenty years. If you need reliable, highly trained armed or unarmed security guards to protect your business, call one of our friendly representatives today at 1-800-794-1550 for a free quote.