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The Hanover, and Mitchell & Mitchell, recommend business owners consider the following best practices to reduce the risk of employee crime:

  1. Perform thorough background checks (in accordance with law) of all potential hires; don’t take shortcuts or assume.
  2. Make sure there is clear accountability for every position in the organization and no position has broad enough power to authorize payments without the consent of another individual. Seek to set up a system of checks and balances.
  3. Set up a tip line for the organization, guaranteeing anonymity, in order to allow for the reporting of any suspicious activity or suspicious business practices.
  4. Encourage all employees who handle accounting and payment functions to take vacation time, with another person handling their work in their absence.
  5. Communicate often and clearly about the company’s policy on employee conduct.
  6. Don’t allow discrepancies to be attributed simply to the cost of doing business. Be sure to conduct a thorough investigation of discrepancies.
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