The Association of Certified Fraud Examiners (ACFE), the largest anti-fraud organization in the world, estimates that companies lose 5% of revenues to employee theft. With the number of people facing financial hardship in today's economy, the odds that someone at your company may steal increases. Even a modest reduction in fraud would significantly improve your bottom line.

This article by Mike Periu, courtesy of the OPEN Forum, makes the following suggestions for minimizing employee fraud at your company:

• Foster an ethical organizational culture. If the owners and top managers act ethically and reward ethical behavior, it sets the tone for everyone else.
• Train everyone on detecting fraud. By doing so, everyone becomes a second set of eyes and ears for the company, making it more difficult for fraud to take place undetected.  It also sends a message to those considering fraudulent activity that they should think twice.
• Launch a whistleblower hotline. A hotline is one of the most effective and least expensive ways to detect employee fraud.
• Implement effective monitoring systems. An important component of effective monitoring systems is the perception by staff that monitoring is taking place.  This helps deter fraudulent behavior.
• Hire a fraud examiner. If you believe your company has been the victim of occupational or employee fraud, then you should consider hiring a professional for assistance.

To read the complete report from the ACFE in PDF format, click here.