Allianz Trade estimates that up to 10% of companies fall victim to fraud committed by their employees annually.
Your company must balance trust and corporate culture with prevention and control.
You can't become complacent about your existing processes or lulled into a false sense of security. Find expert advice to help protect yourself, and make sure you have comprehensive business fraud protection.
Fraud and embezzlement: The most common types of fraud
Fraud and embezzlement account for 58% of all white-collar crimes. According to Allianz Trade estimates, up to 10% of companies fall victim to fraud committed by their employees annually.
That’s why it’s so important for companies to balance trust and corporate culture with prevention and control.
Building a trusting culture in your business can help with fraud prevention
The importance of trust and culture in preventing fraud: What do you need?
An open, trust-based corporate culture with clear, simple hierarchies.
A good, constructive culture of criticism of errors and open communication.
Clear corporate guidelines and ethical values that you integrate into day-to-day work.
A cooperative, democratic leadership style that shows appreciation, trust and respect.
Good working conditions: fair pay, financial incentives, rewards for performance, and interesting challenges.
Equal opportunities, diversity, and fair career prospects with clearly defined objectives and transparent criteria.
Talent management and staff satisfaction surveys; implementation of measures to increase staff satisfaction levels.
Support for employees in (personal or financial) difficulties through appropriate assistance or counselling programmes.
What steps can you take to protect your business from fraud?
Precautions and controls to help prevent fraud
Put control and compliance systems in place; in particular the separation of functions (four or more eyes principle).
Create campaigns and provide training to raise awareness among staff of internal guidelines, critical situations and how to detect anomalies.
Carry out routine checks, internal audits, and checks by external third parties where needed.
Implement secure internal (and where appropriate, external) whistleblowing channels (e.g. ombudspersons) and regular information to staff.
Implement preventive risk management and regular process updates, reviews and improvements for system weaknesses.
Be vigilant and observant to spot irregular activities. This includes peculiar working hours, attempts to access secure data or personal information, or the use of protected data storage media.
Check on job applicants, e.g. compliance screenings, police clearance certificates, background checks, and references.
Examine personal factors and backgrounds for especially security-sensitive positions.
Protect yourself from fraud
Even the most stringent security controls and supportive corporate culture won’t eliminate the risk of internal business fraud. Protect yourself against financial losses through dishonest, fraudulent, malicious or deliberate criminal acts with our comprehensive fraud protection cover.
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