Employee fraud is recognized by many employers as one of the most common threats they face. Ironically, most businesses fail to take the most basic measures to prevent themselves from falling victim to fraud. In fact, in a recent survey, nearly 40 percent of employers claimed that fraud was the biggest threat to their company, yet they have taken very little action to prevent it from taking place.

I find it surprising that a company will take every precaution necessary to make sure their business is locked and secured at night, but they take no measures in preventing themselves from being ripped off by an employee. Owners will spend thousands of dollars on a state-of-the-art alarm system, but they won't perform a background check on a potential sales manager.

Employee Fraud Can Be Reduced

Employee fraud can be reduced especially with all the different screening services available. Companies no longer have to perform their own background checks, reference checks and license checks. They can hire firms that specialize in those services, firms that will do a better job than they could ever do. By advocating the use of the aforementioned screening services, companies can dramatically reduce fraud among its employees.

The best way to eliminate the risk of fraud among your employees is to hire the right employees in the first place. If you have a staff of responsible, honest people, they will most likely act in a responsible and honest way. It sounds simple, because it is. Unfortunately, what's simple in thought may not be simple in practice. Thoroughly screening a candidate takes a little more time than hiring someone on the spot, but that extra time will save time and money down the road.