FinanceRegs.com » Psst…if you steal, we’ll keep it quiet

Psst…if you steal, we’ll keep it quiet

February 16, 2009 by Carol Katarsky
Posted in: Best practices, Fraud prevention, In this week's e-newsletter, Internal controls, Latest news & views

You’d probably think if you discovered an employee was committing fraud that your company would report it. Don’t be so sure. Fully 41% of finance execs said they would only investigate internally or take a wait-and-see approach before reporting fraud they discovered at their companies.That’s according to Deloitte’s recent study.

And a surprisingly low 75% said they support zero-tolerance policies and/or strict discipline, including firing, after fraud is uncovered.

Prior research has shown that a tough response (or the threat of one) can not only deter potential fraud but also minimize the damage done. So it seems upper management’s reluctance to play hardball with internal fraud may actually make your job more difficult.

What do you think: Should companies take a zero-tolerance approach to fraud, or should everything be handled on a case-by-case basis? Share your thoughts and experiences in the comments.

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One Response to “Psst…if you steal, we’ll keep it quiet”

  1. Don Says:

    I can’t imagine a circumstance that could justify a company keeping an employee who stole from them.


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