Employee fraud is something that businesses across the U.S. struggle with, and the problem is bigger than you can imagine. Thousands of organizations report unlawful activities by even the most loyal people. The worst part is that they land in trouble with authorities and customers, even without being aware. Sales team frauds are common, as these reps often interact with customers independently, without much supervision and control. When they deceive your customers, there is a direct risk to the revenues and reputation of the business. So it is vital to go the extra mile with a prevention plan for curbing such unlawful acts. Here are some actionable measures that can help in preventing sales team frauds.
Know your employees
Businesses need to keep close track of employees, specifically the customer-facing people like sales representatives. Everything starts with good hiring practices, which is the reason why businesses across the country prioritize employee background checks and verification these days. Further, you also need to pay attention to the behavioral traits of new and old salespersons because they can give clear indications of the potential fraud risk. For example, if you suspect that a team member isn’t reporting sales calls properly, there are chances they may be deceiving you.
Have an effective reporting system
Statistics show that effective reporting makes all the difference when it comes to preventing sales frauds. Implementing a robust reporting system is as good as a warning for the reps that the management is watching them at all times. Even those planning to deceive the business or customers will think twice before acting. Encouraging team members to report incidents is also a good idea. You can even consider incentivizing people who come ahead and report, while anonymous systems work where employees are hesitant.
Hire legal experts to handle frauds
Sales frauds happen despite having the best controls in place, and it always makes sense to be prepared. Hiring legal experts to handle the incidents is the best way to keep your business safe. For example, you would need an attorney to help in a criminal trial in Alaska if a customer files a lawsuit against your company because a sales representative defrauded him. Criminal lawsuits can have serious legal repercussions such as penalties and even jail terms, so you cannot afford to take them frivolously.
Create a strong corporate culture
If you are looking for fraud prevention for the long haul, a positive work environment can serve as the foundation. A clear organizational structure, along with fair employment practices, gets things on track. Further, written policies and procedures are equally vital. Also, inform the employees about a zero-tolerance policy towards frauds and business crimes. Foster open communication and transparency within workplace culture so that employees are encouraged to be honest with the seniors and management.
Even as the incidents of sales fraud are growing, business owners in the U.S. are coming up with strong strategies to curb them. Experts say that prevention should be the top priority because it can save your business from the serious implications of such incidents.
Comments