If you or your managers suspect fraud is occurring in your organization, you can’t afford to wait to act. According to the Association of Certified Fraud Examiners, the longer an occupational fraud scheme continues, the more it will cost the company a significant amount. So any suspicion should result in hiring a forensic accountant to investigate. During an investigation, these professionals generally interview potential suspects and witnesses. But before they do, you should attempt to gather some basic facts by talking to employees who might know something. Before you speak … Before you interview anyone, consult your attorney to ensure you don’t create a legal liability. Then, decide what information you’re looking for. Knowing what you want helps you get to the truth of the matter quickly and...

In many occupational fraud incidents, the perpetrator is a long-tenured, well-liked and high-performing employee. In part, that’s because many organizations ignore red flags when employees have impeccable records — which makes it easier for them to commit illegal activities. In such situations, misplaced trust becomes a vulnerability. How can you rely on your employees yet prevent theft and other crimes? Correlation between tenure and losses Employees who’ve been with an organization for years often develop strong relationships and may have earned performance and service awards. The trust they’ve built over time generally means they’re granted more autonomy than newer employees, and their actions are questioned less frequently. This can cause coworkers and supervisors to overlook warning signs. Unfortunately, this level of trust can make it easier for...

Forensic accountants are best qualified to unearth the “hows and whys” of occupational fraud. But it’s up to employers to know when it’s time to call for professional help in the first place. The signs of fraud can be easy to miss, but they’re usually there. Something doesn’t belong Dishonest employees may use anything from fictitious vendors to false invoices to cover up theft. To ferret out potential fraud, look for such signs as: Duplicate payments, Out-of-sequence entries, Entries by employees who don’t usually make them, Unusual inventory adjustments, Accounts that don’t properly balance, and Transactions for amounts that appear too large or too small, or transactions that occur too often or too rarely. An increase in the number of complaints your company receives is another warning sign....