Many businesses experience an increase in fraudulent activities, including embezzlement of funds and asset misappropriation, which can create financial losses if left undetected.
Financial crime is constantly on the rise, making it important for companies like Refinitiv to provide more cutting-edge software and risk solutions to minimize fraudulent activities as a whole.
Let’s explore the top strategies for fraud prevention in Singapore.
1. Hire the Right Employees
Many businesses do not seriously consider that their employees might be involved in financial crime and fraud within the company, meaning management should take the necessary steps to observe employee activities.
Doing a background check before hiring workers may reveal indications or a likelihood of fraud, which is the ‘step one’ all businesses should take when selecting suitable candidates for internal roles.
Owners and managers must get to know the employees on a personal level, revealing any attitudes the workers might have that hint at fraud or theft.
Paying close attention to employee performance and activities will minimize the likelihood of any such activities from occurring, making the workplace happier and more productive.
Asking personal questions may reveal clues about your employees’ personal lives, which is mandatory to perform, especially if your business runs on sensitive data.
2. Create Reporting Systems
If employees are not kept in the loop regarding anti-fraud policy changes within the workplace, such as anti-money laundering, they will be more likely to commit felonies that could result in revenue losses.
You are likely to win over honest employees who may reveal any suspected fraudulent activities within your organization, allowing your business to quickly take corrective action.
Statistics indicate that more than 40% of such activities are revealed through an employee tip, allowing the management to address any issues forthrightly and press the appropriate criminal charges.
Other individuals who may report such activities include customers, vendors, and competitors, making it important for companies to listen to their employees and set up the appropriate reporting systems.
These reporting systems ensure anonymity, which might be crucial for fraud prevention.
Singapore has recently noticed a rise in fraudulent business activities, meaning that necessary management changes like reporting systems can result in prevention and minimization.
3. Apply Internal Controls
Your company’s assets and sensitive data must be protected at all costs, making it important for you to apply and implement internal controls that safeguard valuable information against external threats and prying eyes.
For example, you might want to divide tasks to prevent one employee from handling all responsibilities. This avoids the possibility of any discrepancies occurring and becoming normalized, which can lead to internal fraud.
Sales receipts and bank deposits must be recorded in documents and journals as internal control, preventing the likelihood of theft and fraud from occurring.
Using the latest technology, such as software specializing in risk management and control programs, will allow your business to thrive and minimize the risk of fraudulent activities from occurring.
Many businesses are shocked to discover that some of their most loyal employees were involved in committing internal fraud by withholding information, being sly during internal and external audits, and working with other fraudsters, such as vendors.
Having suitable fraud prevention programs in place will discourage employees from pursuing such activities. Moreover, keeping a close eye on internal operations will ensure that anything suspicious that comes to light is addressed straight away.
Intellinz provides software solutions for fraud prevention, allowing your business to stay protected from all criminal activities, especially cybercrime and internal theft.