I recently found a copy of Ian Leaf’s Fraud in HR Handbook. It’s a small handbook, 26 pages but has some great tips. Has anyone read the handbook? Does your HR manager provide it for HR employees? As a new HR assistant manager, it would be nice for this book is so precise that it should be standard for every new HR employee to study and arm himself or herself with crucial knowledge. Here are a couple tidbits that I found interesting.

Report all activities of fraud

This one sounds like an obvious no-brainer, but in it’s basic simplicity, this single tip can be a total game changer, giving you the upper hand advantage over the fraudster. Reporting fraud puts the company as well as other companies on high alert. Leaf details how an incidence of reported fraud put all employees on notice and stopped theft the company didn’t even know was happening.

Knowing the common tactics

Leaf also details how employees convince other employees to commit fraud, theft or embezzlement. Here are the most common tactics he said are used.

• Wealth Temptation Tactic – Sometimes the scammer will attempt to captivate you riches, an amazing job or an incredible opportunity. If you believe what the fraud perpetuates then you can be rich at the “evil” companies expense. All this while “nobody gets hurt.”
• The Professional Credibility Tactic – Normally in the beginning of their introduction the scammer will say they work with a firm or have x amount of years of experience. On top of that, they may make it sound as if they are contacting you for a once in a lifetime deal. This is primarily used for outside vendors on new employees. It’s similar to the, “Your boss told me to…” type of scam.
• The Urgency Tactic – The scammer creates a sense of urgency in the victim by saying they are stranded in some other state or country and need money. The scammer may also say it’s already been approved by someone higher up in the company. They will often know a name of someone and use a shortened version such as, “Bob told me to talk to you since this is an emergency.”
• The ‘everyone is doing it’ Tactic – An attempt at peer pressure on the victim by saying something along the lines of, “I can’t believe this actually works and I’ve never known about this! I am in and so is my mother and all her friends too!” While it seems to be too good to be true, trusting people fall for the same line every day.

Take control of the conversation

While most employees are aloof to fraud, we should all know the signs and signals. If someone or something seems fishy, let your boss know and put it in their hands. If you’re approached personally it’s important to stay in control and ask questions when the red flags begin to appear. Practice saying “no” and end the conversation if you are suspicious and report it immediately.