If you’re a founder or CEO, you’ll know the sheer volume of hard work that goes into getting a business off the ground. The days spent honing your offer, grinding out the finer details and getting just the right people on board. The last thing you’d want to consider is that those same people might be stealing from your business, from you.
But every single business is at risk, from the Silicon Valley tech conglomerate to the local steel factory and every business in between, even banks.
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If you’re a founder or CEO, you’ll know the sheer volume of hard work that goes into getting a business off the ground. The days spent honing your offer, grinding out the finer details and getting just the right people on board. The last thing you’d want to consider is that those same people might be stealing from your business, from you.
But every single business is at risk, from the Silicon Valley tech conglomerate to the local steel factory and every business in between, even banks.
And yet so many high level managers believe themselves infallible. After all, they’ve had the same team for years, used the same reliable systems for years and done the same things, the same way for years. And that’s exactly why they’re vulnerable. That and a head-in-the-sand approach to long-term security.
Statistically, it’s small to medium sized enterprises (SMEs) that are most at risk. While larger firms are more likely to have systemised security, it’s the smaller operations that rely more on the honesty of their staff to prevent any major disasters. And by disasters we mean, of course, theft and fraud. This might look like the planned stealing of physical goods from a warehouse or hardware from an office. It might also be a soon-to-be ex-employee downloading confidential customer details in order to use them in their next role. Theft and fraud can be as subtle as creating a false account or as blatant as forklifting a bunch of car components from a warehouse.
And it could easily be your business.
Take a look back at any court case involving employee dishonesty and you’ll find one thing in common: every single person caught in the act has a reason for stealing.
A sense of entitlement, wanting the more expensive things in life like better cars and holidays or funding luxury holidays; the excuses are endless. Whether they sound credible or not to you matters very little, once the perpetrator has convinced themselves of their need, the potential to commit fraud is significantly higher.
But rationalisation is only one side of the Fraud Triangle.
Let’s explore two further sides that create the perfect storm for employee dishonesty:
Remember earlier we talked about why you’ve used the same systems and the same technology for so long? Because it works, right? The smooth running of your business is a priority, having your team file and pay invoices works, giving teams all-access to data works and those security cameras you have in the warehouse? Well, they kind of work.
A dishonest employee is very often someone who simply spots an opportunity. An accounting system that’s a bit clunky, the ease of downloading confidential data onto a thumb drive, or how easy it is to override security doors at your storage facilities.
Pair that up with a rational excuse for why they should steal from your business and it’s a powerful driving force. All that’s missing is the third spoke to the wheel:
Or sometimes referred to as pressure. Knowing you could steal, and justifying why you should just needs one final push.
Maybe it’s a partner at home who wants to set up a business of their own but needs help getting off the ground. They encourage the employee to skim a bit off the surface and reward them with their time and attention.
Maybe an addiction has got out of hand and fear of getting caught out pushes an otherwise honest employee down the wrong path in order to clear a catalogue of debt.
Maybe it’s quite simply: greed. A desire for more and more. Nine times out of ten this is the reason, financial remuneration to fund a lavish and materialistic lifestyle. To furnish your house with the very best furniture, the greatest art or even rare Star Wars collectibles.
Get in touch for a complete safety audit:
Find out how you can spot the potential for theft in your organisation here.
What powers do private investigators have? Find out here.
How do you know you’re not hiring a cowboy? Find out how to avoid the cowboys here.
Now you know the potential danger to your business. It’s time to act. Book a consulation today: