VIA KPMG

14. August 2020

Mitigating the rising risk of employee fraud

During times of crisis, the number of cases of employee fraud and misconduct grow substantially. Investing in due diligence is key to mitigate the risks and identify fraud. Periodically screening and vetting existing employees can protect and enhance the overall security of your organization.

The turbulence of today’s dual health and economic crises is unprecedented. To reduce the risk of insider fraud or misconduct, effective background checks for employees and candidates are an essential and effective countermeasure during the COVID-19 crisis.

Even though we want to believe that the majority of people conduct their work conscientiously and honestly, some of the most devastating threats come from inside an organization. The COVID-19 crisis will lead to a rise in fraud risk and the erosion of trust established between employees and employers. Depending on an employee’s position and the nature of the business, companies face a range of risks including financial loss, money laundering, misappropriation of assets, operational risks and reputational damage.

 

 

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