The pandemic has made things challenging for business owners. While business continuity is a major aspect they are struggling with, the threat of corporate crimes is also on a rise. The transition to the remote model is stressful and disruptive, which makes organizations all the more vulnerable. So this is the time when they need to be all the more vigilant about threats like employee fraud, theft, and embezzlement. It is equally vital to have a response strategy in place so that there is clear understanding of dealing with such incidents if they do arise. Here are some facts that you need to be aware of for handling employee crime effectively during the pandemic era.
The elevated risk of employee crime
A switch to remote work has opened greater opportunities for fraud in more than one way. While there are cybersecurity threats, your internal controls on cash handling, collections, payables, accounting, and payroll may also be compromised at this point in time. This translates into risk for the financials as well as the confidential business information being handled by remote teams. Further, there is also the risk of basic-level frauds such as time record manipulation as a part of telecommuting. Considering these elevated risks, the implementation of proper control measures becomes valuable during the COVID-era. The fact that the new normal is going to around necessitates a long-term plan for businesses to deal with corporate crimes.
A legal plan of action is essential
While the schemes for employee crime may be evolving during the pandemic situation, the preventative measures for businesses remain the same. If your company is the victim of employee fraud, the proper response is vital. According to Dattan Law criminal defense experts, you must have a clear legal plan of action to deal with such a situation. The crisis is no reason for being lenient with the people who don’t have good intentions for your firm. A business lawyer can recommend the best way to handle the situation- whether you should pursue civil remedies or file a criminal case. They can also help you with investigating fraud and proper evidence handling while ensuring security and confidentiality.
Stay one step ahead with risk identification
Although a proper legal plan has you significantly covered in case of fraud, it is better to prevent one in the first place. The best way you can do it is by staying one step ahead with risk identification. Ideally, you should be able to assess the risks related to the new work model. Further, it is important to identify the vulnerability level to these risks and the impact they may have if the risk does crystallize. Clear identification of these factors can help you think about an effective mitigation plan for your business. You can go the extra mile by including a governance process for the management of fraud risk in your business continuity for the pandemic period.
Preventing employee crime and handling it effectively is an essential aspect of running a business successfully. Right now, it becomes all the more critical because it matters to your survival during the crisis.