Last Updated on Feb 28, 2020 by James W


Unfortunately no business is completely immune to fraud. How fraud is dealt with can help be a deterrent for future occurrences. Fraud committed by employees must be addressed immediately and with harsh consequences. It certainly helps if you can hire security personnel who has an MBA in fraud management, however if that is not an option here are some tips that will help.

If you are given information or suspect that an employee in your business has committed fraud, the first step you need to take is investigating the claims or your suspicions. Unless you saw the act yourself with your own eyes, you can not confront the employee without some kind of proof to back up your claims.

As you are investigating, collect any evidence that will make your case. Surveillance video is always a solid resource if you have cameras set up. Once you have enough irrefutable evidence you are ready to confront the employee who has committed the act.

When confronting the individual who committed fraud, you need to do it in a professional manner. Call them into your office or another private meeting area to discuss the issue. Be straightforward, state your case and give the employee a chance to explain and come clean. You can also show the individual any proof you collected while investigating.

It is also important to know whether or not there was anyone else involved in the fraudulent act, or if anyone had any knowledge of it but didn’t report it, even though they may not have participated. This will also need to be handled quickly and efficiently.

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If the employee is cooperative, it is also a good idea to ask them why they committed the fraud and how they were able to do it. This will help you in preventing the same act of fraud in the future.

Finally, once you have confronted the employee and gotten as much information as possible, you must deliver the consequence. Explain to the employee that they are being terminated and that fraud is an unforgivable act. A business could be destroyed by allowing employees to get away with committing fraud and you are not going to let that happen in your business. Write up a termination statement in writing stating that they understand the consequence of their actions. Have them sign your copy and give them a copy to keep.

As unfortunate as it is, any business is susceptible to fraud. If you utilize these tips you will be better off, and remember, if you can, try to hire a staff member with an MBA in fraud management, this can take a lot of the stress off you.

Author Bio:

Dee is an office manager and is also responsible for maintaining financial records at her company. She does freelance writing/blogging on the side and enjoys ghost writing as well.

image source: fotolia


Founder and chief editor of Blogger, Affiliate Marketer, Tech and SEO geek. Started this blog in 2011 to help others learn how to work from home, make money online or anything related to business and finances. You can contact me at

1 Comment

  1. Being victim of fraud can happen to anyone even to big companies. This is why people who does fraud should be punished heavily to serve them good lessons.

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