Wednesday 27 May 2015

Internal Fraud & The Common Signs By Qui Tam Attorneys

By Bob Oliver


Internal fraud, in any business, has the likelihood of hurting everyone. Not only do business owners find themselves suffering from losses, but it's easy to imagine that the job security of employees will not be as strong. This is a problem, to say the least, and anyone who's familiar with qui tam practices will say the same. However, in order to better understand what this level of fraud entails, here are a few of the most common signals to stay aware of.

One of the first points to mention, as it relates to internal fraud, would be the complaints which come in. You may hear from workers that, for example, payments are coming in late or that there may be issues when trying to make deposits. These instances are ones which can be immediately recognized by companies like Whistleblowers Against Fraud. This is one of the many signs which, as qui tam attorneys will tell you, will require immediate attention.

Structural instability is yet another potential sign of internal fraud taking place. Let's say that someone who is in charge of finances is let go, for one reason or another. Until another person starts to take that worker's place, the financial aspect of a business may be relatively untouched. Suffice it to say, this is when internal fraud may be at the highest level of risk. Business owners should make it a point to have replacements scouted before this type of fraud can be carried out.

Work ethic, believe it or not, may be another sign of internal fraud to be aware of. To better illustrate this point, let's say that an employee volunteers to work after hours. This could be seen as a positive sign but it's not uncommon for these men and women to stay in the office where it's easier for fraud to take place. Even though no conclusions should be immediately jumped at, especially in this regard, it's a situation that deserves attention all the same.

If you're going to learn about internal fraud, it's easy to imagine that common signs will have to be evaluated as well. To say that these signs stand out would be nothing short of an understatement, especially amongst those who have witnessed fraud firsthand. For those who operate their own businesses, hopefully the aforementioned talking points will prove to be useful. If nothing else, they will certainly expand your understanding on the matter.




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