Employees 'can pose a fraud risk to businesses'

01/September/2010

Employers should be aware that risks to their business can emerge internally as well as externally, it has been claimed.

Writing for Accounting Web, criminal investigator Martin Cunningham noted that unscrupulous people can infiltrate organisations and then commit fraudulent acts which result in financial and reputational loss.

He urged employers to "take a closer look" at the activities of their workers from time to time, even those they believe are trustworthy.

"Many smaller businesses are being 'milked' by employees without a hint of wrongdoing coming to light," Mr Cunningham claimed.

Businesses should also ensure they obtain all necessary information on potential new clients before exposing themselves through new partnerships and other ventures.

Jordans can provide anti-money laundering reports - to confirm the existence, status and legitimacy of clients - and document monitoring services to check what clients, partners and competitors are up to.