Money is vulnerable to fraud every time is handled by employees. At any point of the business phase, attack on receipts can occur. Businesses that are not adequately controlled and those that rely on few employees that handle as well as record transactions provide a chance for this fraud. Small businesses are most susceptible to theft losses by employees. Even though there are no returns, employees might record such a transaction as if the clients are returning the goods. The inventory of the company tends to be overstated by such operations. Such frauds are very difficult to detect because most companies don’t check inventories on a regular basis.
Thus, it is very significant to prevent such fraud returns. One way in which the recording of fraud returns can be prevented includes hiring specific employees whose task is to verify as well as authorize returns and ensure transactions are appropriately recorded. Where there is a series of individual frauds who cover each other, the employees should be separated or rotated. Through this, the opportunity of the fraudster to continue with the plan is taken away. Another way comprises impromptu checks on cash register as well as appropriate inventory control.
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The measures that ought to be put in place to detect such fraudulent activities include; I) Asking the customers to give feedback as well as state the reasons why they are returning, II) analyzing as well as comparing the returns for each employee and getting to understand the reason for the high rate in return, III) Establishing and undertaking analytical measures that expose the increase in return as well as find the reason for such returns. It is vital to put in place a sound inventory control to identify shortage in inventory.
