Employee fraud activities are mainly affected by SMEs which do not have potential internal controls of money and paperwork. The management should be vigilant and in case of a fraudulent activity suspected, collect enough evidence before accusing someone. Sometimes firing them alone may not be the solution for the loss you had faced. Dealing with dishonest employees has to be done with utmost care.
Types of Employee Fraud
The employee who committed fraud activities in organizations is treated differently according to their employee policy. Employee frauds are in different types, the most common fraudulent activities in business are as follows:
- Intellectual property theft is a common type of fraud in the business. May be copying a software code or product formula, sometimes stealing your customer list data, or your market strategy in business, etc.
- Make use of company products like a business credit card for personal purposes, adulterated expense account, etc.
- Health insurance fraud by submitting false or inflated bills to the insurer.
- Worker’s compensation faking by lying about disability or injury at work
- Money theft
- Procurement fraud
- Lying about the working hours completed or fraudulently claiming sick pay.
If the employee who committed fraud was not caught red-handed, the first thing you need to do is collect shreds of evidence against the employee who committed fraud. Without evidence, you can’t accuse someone and it may take you to the lawsuit. Once you are done with the documentation of the evidence collected, meet the employee in person, and get all the information you can get from him. The reason behind the fraud activity, whether they acted alone or other people involved in the activity. Once you are convinced the individual has really done an activity that harms the organization, go ahead and fire. Or use the TRST Score platform to give a low ethical score or trust score.
Yes, sometimes it is more than firing them, when they take a toll on you by committing some serious unfaithful behavior by looting or cheated on his resume, TRST Score can help you. It is a platform to rate on the basis of the ethics and trustworthiness of the employee or the candidate who attended an interview in your organization.
You can give less star rating
- If the candidate accepts your offer letter and decided not to join the company last minute.
- If some employee in your organization left the company without serving the notice period.
- Sexual harassment in the workplace
- Discrimination based on gender, color, or caste
- Data theft and IP theft, and among others
Employee’s ethic score platform is a punishment for the doer and also acts as a warning for the other employees. TRST Score Platform helps to prevent financial stress because of unfaithful employees and make use of your valuable time for better productivity and business functionality. So, when you detect an unfaithful employee who is creating a stressed environment in your organization, all you have to do is give a low ethical or trust score on the TRST Score platform. By doing so, you are signaling other employers on the platform that the particular individual has behaved unethically and created chaos in the organization. “Beware before selecting the candidate”. Discourage the employees to behave unethically just by enrolling in the TRST Score Platform.