Safeguarding Against Fraud
In This Chapter
Being realistic — why fraud can happen to you
Protecting the flow of cash in and out
Taking preventive action
Detecting when something is rotten in the state of Denmark
Guarding against online fraud
I often wait until I’ve completed writing a chapter before writing the intro. (I do this partly because intros are difficult at the best of times, and partly because I prefer to write the intro after I’m sure what the rest of the chapter holds in store.)
So, I’m writing this intro having just finished writing the chapter and boy, I’m feeling pretty down in the dumps. Days on end discussing fiddling books and diddling timesheets, chiselling the boss and fleecing the owner, taking someone for a ride and doing the dirty. Hours chatting to business owners about bitter lessons learned, and long evenings trawling the Web for stories about fraud and where the loopholes lie.
Despite my heavy heart, I realise this chapter is necessary. The moment a business hires an employee who has access to cash or company assets, this business takes a risk. To balance this risk, you need good systems and excellent controls. I prefer to be realistic and put systems in place that safeguard against fraud, rather than to trust in the universe and then have the rug pulled out from under my feet.
Even if you don’t have any employees, or you’re reading this chapter in the capacity of a bookkeeper, rather than a business owner, then safeguarding against fraud ...