Employee fraud is very common especially in smaller businesses that don’t have the processes and procedures in place to fight it. In this article, we will take a look at some of the best ways your business can fight fraud using the latest advancements in technology.
Using AI to detect fraud early
Humans can sometimes think they are smarter than they actually are but as a race, we are creatures of habit and because of this AI can be used to detect patterns in absenteeism. Employee absenteeism costs businesses millions each and every year but using AI you can cut down on this loss and fire the culprits which are genuinely not sick.
AI can be used to look at your employee data to find common patterns and then use these patterns to predict future sickness. Using this data you can then speak to employees that seem to have the same patterns of sickness to see if there is anything else you can do to help them from being sick.
Not every employee will be committing fraud, it could be that they are genuinely sick as a result of the work they have to complete at set intervals.
Your project managers for example may need a few days off at the completion of big projects as they could be exhausted. Instead of them being sick and you have to pay for it you could use this data to implement company policies that give your staff days off after big projects. This way your staff will be refreshed for taking on new projects and they won’t have to pretend to be sick.
AI can also be used to detect fraud in different ways. If your own company vehicles and your staff need to fuel them but you have a discrepancy in miles driven to the fuel being used it could be the case that your fuel is being stolen or your company vehicles are being used in a way in which they aren’t supposed to.
Company vehicles being used for personal reasons may not seem like a big thing to most but if everyone at a company did this the fuel costs soon add up.
A key or a password can be shared or copied and as a result personnel could end up in areas of your business where they have access to valuable property. If this property goes missing there is no way to know who had access to that room and who potentially stole the item.
Biometrics on the other hand is unique to the individual and systems will keep logs of personnel who have entered rooms with their biometrics and at what time. This helps keep your staff accountable and keeps your products safe.
The costs of hiring a private investigator for your business aren’t that high but before hiring an investigator you may want to install CCTV in your business, especially if you think items are being stolen and you can’t afford to implement a biometric system.
Installing CCTV systems has many benefits, it can reduce your insurance premiums, can lower the chance of burglaries and it can also have a positive effect on your staff as they know they are also protected from being blamed for any wrongdoing.
If you do go down the CCTV route be sure to install it in areas where your valuables are kept and you may also need to install better lighting. CCTV is limited by the light that is available at the time, installing better lighting with your cameras is going to make sure you capture the perpetrator in detail.
Don’t just rely on tech
Technology is here to help us with many of our daily needs including security but it’s important to remember that you shouldn’t just rely on it alone. People can be smart and can outwit the technical measures that you put into place.
When using technology to protect your business you should also be using physical security measures such as auditing inventory, hiring security guards, and vetting new potential clients to the best of your ability.
With the combination of physical and tech security, you are going to make it far more difficult for your employees to commit fraud.