Fraud Doesn’t Knock: It Slips In Through Loopholes
The greatest fraud risks are the ones you can’t see until it’s too late.
Fraud doesn’t always come from the outside. In fact, some of the most damaging fraud incidents happen from within, often by “trusted” staff members who exploit weak internal controls. You may think you’re safe, but if your company lacks the right financial safeguards, even the most loyal employees can slip through the cracks and cause irreversible damage.
The truth is, fraud often doesn’t announce itself. It sneaks in through loopholes like poor documentation, inadequate oversight, and a lack of separation between duties. A single person having too much control over financial processes can open the door to misappropriation of funds, falsification of records, or theft. These risks aren’t just theoretical; they’re happening every day, often under your nose.
Common entry points include the lack of segregation of duties, where one person handles both payments and record-keeping, making it easier for them to cover their tracks. Poor documentation also opens the door for fraudulent activity. Without proper documentation to back up transactions, it becomes difficult to trace errors or intentional fraud.
At Networth Adjusters, we focus on setting your business up for fraud resistance from the ground up. Internal control systems are the first line of defense. We help businesses strengthen their financial oversight through thorough audits, transparent reporting, and the implementation of segregation of duties and approval workflows.
This week, let’s start by taking a hard look at your internal controls. By setting up the right safeguards, you’re not only protecting your assets, you’re building a foundation of trust and integrity.
Fraud resistance begins with vigilance. And vigilance starts with internal control.
