If you believe someone at your workplace committed fraud, you have a right to report their wrongdoing. Whistleblowers are a vital part of maintaining healthy business practices. Whistleblowing discourages fraudulent activity and might reward the whistleblower for their risk.
According to the Society for Human Resource Management (SHRM), businesses lose on average five percent of their income to fraud. Do not let your workplace be a part of this statistic. See below for more information regarding fraud and its prevention in the workplace.
Be a leader at your company
Business fraud is not a victimless crime. It can affect your employment and ability to receive higher wages. Small businesses are more vulnerable due to a lack of funds for fraud control and crime insurance. A single employee or manager who misallocates resources for their benefit can endanger the entire workplace and potentially cost you your job. If you are a manager, speak with your higher-ups about whistleblower hotlines, ethical education and better business practices. Taking a leading role in fraud prevention is essential to whistleblower protection in a principled workplace.
Whistleblowers are essential to fraud prevention
Audits are important for fraud control, but they are not as effective as tips, according to the SHRM. Auditing procedures only catch three percent of workplace deception. As a potential whistleblower, you are the most important safeguard against fraud. Whistleblower tips account for 43 percent of all fraud detection.
It is important to remember that you are not alone as a whistleblower. Rules and protections vary from state to state, but several federal acts work to keep you safe. Know your rights and carefully consider when to act against fraudulent activity.