Draft an anti-fraud policy


It’s vital to let people know what you expect of them and to demonstrate you take fraud prevention seriously.

People are less likely to commit fraud when they know someone is watching.

Conducting regular financial audits and having solid financial protocols that require two sets of eyes in place shows your office staff that you care about preventing fraud. Similarly, inventory audits demonstrate to shop floor and warehouse staff that you take theft seriously. Surveillance systems show that you are, quite literally, watching. While an accepted element of the retail and warehouse experience they can create an oppositional environment in an office setting. 

A great way to show staff you’re concerned with fraud is to have a fraud policy in place.

  • Your company’s fraud policy should be part of your employee handbook which contains all your other policies. 
  • The handbook should describe your financial and inventory audit protocols. Don’t provide schedules since that could provide fraudsters with windows of opportunity. Instead, simply explain what the audits will involve, making sure the description is thorough.
  • Include information that makes it clear that your own actions and other managers’ actions will also be audited.
  • Obviously, your fraud policy should explain that illegal activities are forbidden.
  • It should state that employees who suspect or know of wrongdoing are required to notify management.
  • If you have an anonymous, third party hotline in place, your fraud policy should explain how the hotline works.
  • Outline your protocols for computer and POS system passwords, explaining that they will be changed regularly and that sharing passwords with other employees is forbidden.
  • You policy should indicate that all suspected frauds will be investigated, regardless of the employee’s position or seniority.
  • Make sure you spell out that committing fraud will result in termination of employment for cause.
  • And don’t forget to add that the company will cooperate with law enforcement and support prosecution of anyone found to have committed fraud.