1. Preventing
Fraud
in your
Workplace

2. Preventing fraud in your workplace
Introduction
• Over the past couple of years,
the public’s attention has been
captured by cases of corporate
fraud involving many
companies.
• In fact, studies show that
occupational fraud now results
in the loss of five percent of an
organization’s annual revenue.

3. Preventing fraud in your workplace
Main Examples
• Their are many kinds of fraud,
such as:
– Falsifying reports or procedures
to maximize results and
performance.
– Misrepresentation of dates or
description of services.
– Accepting bribes from suppliers
and customers.
– Providing false employer group
and/or group membership
information.
– Stealing company’s products.
Embezzlement
Corruption
Fraudulent documents

4. Preventing fraud in your workplace
Strategy 01 – Set clear standards
• One of the best ways to help
safeguard a business is to set
clear standards for your
company employees.
• An employee manual can be
helpful in establishing the
principles and values to guide
your organization.
• The rules apply to everyone.

5. Preventing fraud in your workplace
Strategy 02 – Check employee references
• When hiring new
employees, check
references and perform
background checks that
include employment,
credit, licensing and
criminal history.
• The benefit is far
outweighed by the cost.

6. Preventing fraud in your workplace
Strategy 03 – Secure your organization
• Some deterrents are
simple to initiate, but
often go ignored.
• It is important to closely
guard and monitor
financial procedures and
the company warehouse
/ inventory.

7. Preventing fraud in your workplace
Strategy 04 – Control who reviews sensitive docs
• Companies should control
who first receives the bank
statements and other sensitive
documents.
• This helps eliminate the
possibility that someone
intercepts the mail first for the
purpose of stealing or covering
up an earlier theft.

8. Preventing fraud in your workplace
Strategy 05 – Consider annual audits
• Even though it may not be
required, obtaining an annual
audit is a good idea.
• An audit will not discover all
fraud within an organization,
but it will give you an
opportunity for someone
removed from the daily
operations to take a “bird’s eye
view” of the business.

9. Preventing fraud in your workplace
Strategy 06 – Watch for red flags
• Some of the red flags of fraud include:
– An employee who seems to be living
beyond his or her means.
– A sudden change in attitude and/or
behavior.
– Unexplained profits and losses in the
books.
– Evidence of relationships between
employees and customers or suppliers.
– An employee who never takes vacation.
– An employee who works a lot of overtime.
– Evidence of financial hardship.

10. Preventing fraud in your workplace
Strategy 07 – Zero-tolerance culture
• Develop a zero-tolerance
culture for fraud and
corruption.
• Ensure that all the company
materials or documents send
the same message with
company symbols, trademarks
and slogans that encourage
ethical behavior.

11. Preventing fraud in your workplace
Our References
• Appreciation for Editorial
Assistance by William R.Z. Kush:
– billkush1965@gmail.com
• The following are referenced in this
presentation:
– http://www.businessweek.com/smallbiz/tips/archive
s/2010/07/spot_workplace_fraud.html
– http://www.accountingnet.ie/business_finance/Fraud
_in_the_Workplace__Understanding_the_pitfalls_and_improving_your_
effectiveness.php
– http://www.boston.com/jobs/bighelp2008/fall/workp
lace_fraud/
– http://www.prevention-commerce.com/pcevf.asp

12. Preventing fraud in your workplace
Our Business Contacts
Feel free to send us an e-mail.
Our Website:
www.licoreis.com
Our E-mail:
licoreis@licoreis.com
licoreis@licoreis.com.br
Linkedin: Roberto de Paula Lico Júnior
Skype: roberto.lico