In the world of business, trust is a currency more valuable than gold. Your employees, especially those in positions of authority, hold the keys to your company’s success. In reference to a recent article published in the Morning Advertiser which discusses BrewDog’s employment of a fraudulent employee, serving as a stark reminder that even the most successful companies are not immune to the threat of insider fraud.
Despite BrewDog’s CEO and co-founder James Watt looking back fondly on this occasion and using it as a learning curb for the business. This is obviously one of the last things you want to have happen in your business and we’ll take a look at what we can learn from this occurrence and what to do if you suspect a fraudulent employee and how your finance department can help detect early signs of fraudulent behaviour.
“If it seems too good to be true, then perhaps it is”
In the words of the BrewDog CEO when describing the learnings from this occasion, this is likely one of the most prominent tell-tale signs of a fraudulent employee. Nobody is going to fake being bad at a task, and those who resort to fraud obviously have a lot to prove to people.
The lesson here is that deception often comes cloaked in attractive numbers. And this isn’t unique to the world of hospitality; it can happen anywhere, in any industry. The promise of high returns, incredible growth, or unbeatable investments can blind even the savviest investors.
Essentially, be thorough with your employee onboarding checks, make sure their references and previous work is legitimate and if they start out a bit too strong keep an eye on their behaviour and double check that everything they’re reporting matches what the finance team is reporting.
The role of Finance in detecting discrepancies and fraud
A finance firm like ETC Finance can help detect fraudulent activity before it becomes obvious, preventing it from making a lasting impact on your business.
Audit and review: We conduct comprehensive financial audits to identify discrepancies, irregularities, or suspicious patterns in your financial records, that may not be clear from the overall numbers.
Continuous Monitoring: We offer ongoing monitoring of your financial health to catch irregularities before they become catastrophes for your business.
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