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Best practices for preventing white collar crime in business

On Behalf of | Oct 16, 2023 | White Collar Crimes

White-collar crime encompasses a range of non-violent, financially motivated offenses, including fraud, embezzlement, insider trading and cybercrimes.

The potential for these crimes is higher than ever. Therefore, learn how to protect your company from white-collar crimes.

Hiring and training processes

Start with your hiring process. Check backgrounds and references for potential employees, and choose individuals with a history of integrity. Then, give your employees comprehensive training, including ethics, regulations and the importance of adhering to them.

Strong internal controls

Create strong internal controls in your organization to stop fraud. Make sure different employees handle different parts of your finances and regularly review your financial records for suspicious activities and fraud.

Create a code of conduct that teaches everyone how to act ethically, and gain agreement from your potential and current staff to follow this code. Share what will happen if someone breaks the rules. Then, build policies that encourage employees to report bad behavior, creating a culture in which your staff feels safe and free from retaliation when they report wrongdoing.

Vendor and supplier due diligence

In 2019, 32,100 people faced charges for forgery or counterfeiting, 78,698 for fraud and 9,886 for embezzlement. Remember that these bad people may use vendors or suppliers to do wrong. Check your vendors carefully to make sure they act ethically.

Corporate measures

Hire leaders who act ethically in everything you do. When employees see you do the right thing, they will follow your lead. Also, protect your business from cybercrimes by spending money on strong cybersecurity to keep your data and money safe. Finally, always share correct and up-to-date financial information with your stakeholders and regulators.

As a business owner, you have a responsibility to keep your business safe from white-collar crime. Do your due diligence to keep your business safe.