Employee fraud is everywhere, be intentional about stopping it - Expert counsels

Ransford Nana Addo Jnr, an anti-fraud professional and lecturer, warns about employee fraud. He says it is common in all businesses and homes.

During an interview on Joy FM’s Super Morning Show, he stated that no business is safe. This includes banking, aviation, telecom, and even domestic help.

He shared a story about a house help who suddenly quit. The employers asked her to bring her belongings for her departure. The bag she brought was surprising compared to what she had when she arrived.

To their shock, they found enough provisions to start a business in her hometown. She was supposed to give the children one tin of milk daily. Instead, she saved most of it for her own business.

Mr. Addo Jnr explained that fraudsters often appear hardworking and trustworthy. Their efforts can distract you from their deceitful actions.

He gave an example of a mechanic who seems diligent but may mislead customers. “He might not steal money directly but could push your customers away,” he said.

He warned that employee fraud can quietly ruin a business. You may think everything is fine while your profits slowly decline.

To combat employee fraud, he suggested several strategies. First, avoid businesses where fraud risk cannot be managed effectively. Second, consider insurance options like employee fidelity plans or outsourcing tasks to reliable people.

Third, implement strong internal controls to mitigate risks directly. Lastly, he discouraged simply accepting the risk without action.

“There are those who say they don’t care if someone runs away with a vehicle,” he noted. “But if you want to address these issues seriously, you must be intentional.”