3 Ways to Use Technology to Reduce Employee Embezzlement

Unfortunately, employee embezzlement will always be a problem that needs to be dealt with. However, this does not mean that business owners, managers, and fellow employees should stand by idly and watch it all happen. There are precautionary measures that can be implemented within an organization to reduce the unfortunate events surrounding employee embezzlement.

Some of the greatest ways to reduce employee embezzlement are through using technology. Therefore, I would like to inform you about 3 ways to use technology to reduce employee embezzlement.

1- POS Terminals

Point of sale (POS) terminals must be managed well. POS terminals are where the cash inflow and outflow take place. While, in our current age, most money transfers occur digitally rather than through the transfer of paper money, this does not mean that cashiers cannot commit fraud.

There are numerous ways to commit fraud at POS terminals. Fraud can occur through avenues such as checks, promotional offers, voids, etc. Such activity should be monitored by managers, and even conducted by managers, to ensure accountability.

However, criminal activity can still occur when employees obtain manager information such as POS pin numbers. One way this can be avoided is by using access cards. When managers are required to use access cards to gain access to the POS terminal, this reduces and virtually eliminates the possibility for employees to falsely access a POS terminal.

It could also be wise to take advantage of researching your outlier reports. These reports will show deviations from the norm regarding sales, voids, and the submission of overtime hours. When an employee stands out as one who is conducting an odd activity, it may be time to investigate a little further.

2- Security Cameras

Cameras do not eliminate every crime, but they are a remarkable deterrent to criminal activity. While eliminating embezzlement altogether is a lofty goal, curbing this activity will also be a great success. This is especially true for larger organizations.

Strategically placing security cameras throughout a building, as well as outside, will add a layer of protection that is often unparalleled. For instance, if there was a camera at every register, cashiers would likely be less inclined to steal. Cameras strategically placed in inventory warehouses would also help to deter embezzlement.

3- Accounting Software

Finally, accounting software is also important to consider. It is not only the employees doing the groundwork that must have accountability. A lot of fraudulent activity happens within the bookkeeping, accounting, and finance world. This is not to say that employers should look at all their employees as though they are criminals. It is to say that measures should be taken to increase accountability and reduce the temptation for embezzlement. Accounting software can help to achieve such goals.

With accounting software, users can be delegated specific responsibilities. In doing so, they can also be given restricted access to other parts of the finance department. For instance, the one who pays the bills can be restricted from approving the bills. To go along with this, accounting software also provides an audit log that shows every user’s activity within the organization.