Innocent bosses risk fraud accusations

Too many bosses regularly expose themselves to accusations of fraud because of poor controls over access to company cash, warn legal experts.

Ian Lewis, partner at Rowe Cohen in Manchester says business owners and managers underestimate the risks posed by employees swindling company accounts and should install tighter controls:

Accusations of fraud destroy businesses and reputations, he warns. It’s crucial that watertight procedures are in place to nip it in the bud and identify who is to blame. All too often, it is the unsuspecting boss who is accused by the authorities further down the line, when things have spiraled out of control.

It is important to trust your staff, but exposing yourself to unnecessary risks is like Russian roulette. Unfortunately, in today’s climate, where the authorities are keen to clamp down harder than ever before on fraudsters, innocent people are often targeted.

Access to confidential documents should be restricted to a select few, and accounts should be carefully scrutinised by experts. There are plenty of cases where reputations are ruined because of the fraudulent actions of employees. Being falsely accused of something as serious as fraud is a
terrible experience. Taking precautionary measures is an essential form of due diligence that business owners will do well to implement, he adds.