Websites offer workers help with new techniques
Employees are using new services and technology to defeat employer risk management controls. Pre-employment references are the mainstay of employee dishonesty risk management. However, employees can now tap into reference scam websites that will, for a fee, provide falsified prior employment reference letters and phone numbers where operators will falsely verify prior employment.
Anyone seeking to submit falsified expense reimbursement reports can pay a fee to websites that will fabricate bogus expense receipts in any format needed. Employers are turning to data analysis to help to fight employee fraud. Data analytics software uncovers unnatural expense patterns (amounts, dates, and other information) that may be an indication of fraud.
Vendor fraud is old school, but fertile ground for dishonest employees. Employees can set up fictitious vendor accounts and submitting invoices. Employers should be wary of vendor names that are identified by abbreviations or initials or by a post office box address.
Employee theft claims can be difficult to uncover and can accumulate over a number of years. Therefore, its critical to carry a Crime Policy with sufficient limits.
The video below offers an 8-point list of ways you can detect and deter employee fraud.
Source: “The Fight Against Employee Theft,” Doug Karpp. Insurance Journal, Nov. 4, 2013.