Every business is vulnerable to fraud, especially when there are multiple owners or employees who hold positions of power within the company.
As a business owner or co-owner, it is important to understand the risks and monitor your organization for signs of fraud, theft and financial misconduct.
Odd working hours
Suppose your business partner, who is in a position to make financial decisions, suddenly changes his or her work schedule to avoid being around you and the other employees. In that case, there may be cause for concern. Additionally, if your partner avoids taking time off and insists on working late or long hours, he or she may be trying to maintain a cover for misconduct.
Elusive or defensive behavior
You expect your business partners and high-level associates to be collaborative, transparent and approachable. If someone within your organization becomes distant or defensive when asked about certain decisions, it could be a reason to look deeper into the individual’s dealings within the company.
Drastic lifestyle changes
As a business owner, you may not delve too deeply into the personal finances of your professional colleagues, but you do know their salaries related to your business. If your notice your partner or employee spending lavishly on luxury cars, vacations or designer clothing that is likely beyond their budget, you may want to conduct a review of the company finances.
Fraud can occur wherever there is an opportunity. If someone within your company breaches their fiduciary duty and commits fraud, you have a right to seek legal recourse.
