6 Tips for Deterring Employee Theft and Fraud

Many small business owners discover too late that preventing theft and fraud is a vital part of running a business. It is estimated that nearly a third of business failures in the U.S. are the result of employee theft or fraud. The hiring, management and oversight of employees offers many opportunities to prevent and respond to employee theft before it sinks your business. If you have been the victim of employee theft or have questions about your legal rights contact your LegalShield provider law firm.

1. Establish hiring practices for your business. Always contact references and check employment history. Ask for an explanation of any large gaps in employment history. You may also consider performing background checks on applicants who will have access to financial data, cash or merchandise. The laws regarding your ability to reject an applicant based solely on criminal history vary from state to state. It is important to consult your LegalShield provider to learn about the laws where you do business. Once you establish hiring practices, it is important to follow them for all new hires.
   
   
2. Avoid nepotism and hiring employees with close personal relationships. Valuable employees help monitor coworkers for potential theft, but when they are family or friends, loyalty to the business may become secondary. You should also carefully consider the risk of hiring your own family. A family member may feel entitled to additional benefits or perks. If you do hire family or friends monitor them as you would any other employee and never let theft or fraud go unchecked.
   
   
3. Supervise all staff and managers. In many cases of employee theft it is not the newest employee who steals, but rather the long time employee or manager who was unsupervised. Every employee in your company should be supervised. Create an open workplace where every employee feels comfortable communicating concerns or making suggestions.  Some employees who steal justify their actions by saying that management is unfair, pay is too low or that managers or owners take advantage of the company so they feel entitled to do the same. In an open and well-supervised environment you may be able to head off these issues before they evolve into theft.
   
   
4. Beware of the warning signs. While motivations for employee theft may vary, there are some common warning signs. Keep an eye on employees that frequently volunteer to work outside of normal business hours and do not take vacation. This may seem like a positive attribute, but it may mean the employee wants to be unsupervised to facilitate theft. Beware employees who resist procedural changes or avoid oversight of their work. Drug and alcohol abuse, gambling and high levels of consumer debt are also warning signs to monitor.
   
   
5. Develop multi-level checks and balances. No one employee should have total control or oversight of any area of your business. This is particularly important for accounting and merchandising. Consider having separate employees manage payments and ordering. If your company has large inventory or complex finances you should hire an outside firm to provide auditing or inventory services on a yearly basis. You may also want to perform unscheduled audits to prevent employees responsible for theft from covering their tracks.
6. Follow up on your suspicions in a reasonable and professional manner. Failing to follow up on suspicions is asking for trouble; however,you should never make inflammatory accusations or threats against employees. Do not accuse an employee until you have fully investigated the matter. Making threats or false accusations could ultimately lead to legal action against you and your business. If you do identify an employee responsible for theft follow your HR procedures for termination. Contact your LegalShield provider law firm to learn more about setting guidelines that follow state laws regarding termination as well as your legal options for recovering stolen property.

These days, criminals increasingly target senior citizens and scams. These 3 Steps will help you be more aware and Guard Against Senior Fraud.

The Safety Net and 3 Simple Steps to Guard Against Senior Fraud

April 8, 2015 - LegalShield

The statistics are sobering: criminals increasingly target senior citizens with scams. Their paid-off mortgages, plump nest eggs, tendency to answer the telephone and engage in conversation, and their sometimes-unguarded demeanors make them ideal targets. A recent report developed through a partnership between San Francisco-based TrueLink Financial and Laurie Orlov, a research analyst with Forrester, revealed that seniors lose $36.48 billion dollars a year to fraud. Fraud impacts an estimated 36.9% of seniors in any given five-year period.

Some fraud operations are blatant while others are subtle, like erroneous bills sent repeatedly. Often, seniors do not believe they owe the money, but the amounts are just low enough that it doesn’t seem worth it to fight it. It is tough to prove whether this fraud is purposeful or accidental. Many seniors feel lost and alone in such situations, regardless of the intent of the people involved.

The Safety Net

“I once took a call from a very sweet elderly LegalShield member who lived alone and had no one. She told me that she had received a collection notice claiming she owed about $700.00 on a credit card balance. She did not think she had a balance owing on any credit cards, but she was confused and did not know for sure. She was scared and did not know what to do. Fortunately, she thought to turn to us for help. That’s when the benefit of a LegalShield plan really pays off,” says Joe Lombino, managing partner at LOMBINO ∙ MARTINO, P.S., the LegalShield provider law firm based in Lakewood, Washington.

This woman received support from Mr. Lombino in the form of an initial review of documents and investigation, a letter, a phone call, and, ultimately, a conference call with the collection agency where it was acknowledged that she did not owe any money at all.  The conference call ended with both an apology from the collection agency and a firm understanding that this woman would not be alone in any future misunderstandings of this type; she would have her LegalShield provider law firm by her side.

“I probably did a little more than what was required according to the letter of the contract, but my heart went out to this woman.  LegalShield is a great safety net for people, especially for those who might be vulnerable.  Everyone needs some help every now and again,” says Mr. Lombino.

How should seniors protect themselves from fraud? 3 common sense steps.

1. Don’t stay on that phone! 10 seconds and you’re done.

The Federal Bureau of Investigation, along with consumer advocacy groups like Fraud.org urge seniors to guard against even engaging in conversations with strangers calling their homes. Scammers make it their business to persuade, befuddle, and trap seniors into sharing personal information.

A prolific scam that has recently experienced a resurgence has involved people posing as representatives of the court to call victims demanding they pay penalties for missed jury duty. The threats and shaming throw victims off balance, moving some of them to want to pay up to make things right. If it sounds too terrible to be true, hang up.

Make a 10-second rule for phone calls. No good can come of staying on the line longer, so don’t.

2. Just because the doorbell rings doesn’t mean you should open the door.

The longer a con artist keeps a senior at the door, the more likely that senior will be coerced into boundaries-crossing conversations and exposing information about living arrangements. Seniors who could be characterized as “friendly” lose four times as much to elder abuse because of their tendency to give criminals the benefit of the doubt.

When a solicitor knocks, the FBI recommends seniors shout, “I’ll get it!” as they approach, regardless of their living situations. Speak only through a closed, locked door.  Politely end conversations and be done.

3. Ask for help if something doesn’t seem right.

Families are scrambling to protect loved ones from torrents of too-good-to-be-true offers, manipulative voices over the phone, and random bills as the tempo of scams reaches a fever pitch. Families shouldn’t neglect to tell loved ones to reach out if they feel worried about calls or correspondence they receive.

Signs it’s a scam:

1. Demands for upfront payment.

2. Promises of cash, prizes or trips.

3. Fear mongering and threats.

4. Repeated calls/visits despite requests for no further contact.

5. Offers to send a courier to pick up payment.

“A LegalShield membership really can act as a safety net. There are some real sharks out there and we offer protection. I see us as shielding elderly people from those who wish to prey on them. We act as a lifeline to our members and I’m proud of that,” says Mr. Lombino

- See more at: http://www.legalshield.com/blog/the-safety-net-and-3-simple-steps-to-guard-against-senior-fraud/#sthash.JYQ8VAEM.dpuf