Fraud is endemic to all businesses where money and people are involved. The size and scale of fraud can vary greatly and can extend back over a lengthy period. According to the Association of Certified Fraud Examiners (ACFE), it is estimated that organizations lose 5% of their annual revenues to fraud. Organised crime syndicates have now infiltrated all industries and business sectors.

Before fraud comes about, there are invariably a number of factors which converge, giving rise to the fraud being committed. These are invariably pressure, rationalisation of the crime and the opportunity.

Sadly the majority of fraud is going to be perpetuated by employees and in the case of a small business even the theft or fraud of a few thousand rand could destroy the business. Employees are singularly the biggest risk to a business so it is imperative that all the necessary background screening and reference checks are performed before employees are placed in positions of trust, deal with monies or be left in control of company assets.

This article raises the issue of the risks of not knowing enough about your employees.

Click here for full article.