|
FRAUD IN THE WORKPLACE
DID YOU KNOW?
Financial trouble has led to increased incidents of fraud in the workplace. Employees are becoming paranoid about losing their jobs and are stealing either as a way of getting back at their employers or to establish a financial cushion. In addition, layoffs are leaving huge holes in internal control systems that once caught this type of behavior.
Fraudulent Claims are on the Rise
As the economy continues to suffer, many employers report an increase in fraudulent employee Workers' Compensation insurance claims. The National Insurance Crime Bureau (NICB) also reports a 71 percent increase in Workers' Compensation claims during the first quarter of last year and a 47 percent increase in disability claims.
Watch for the following red flags of Workers' Compensation fraud in your workplace:
-
Accidents/incidents reported immediately prior to a layoff, strike, closing, termination or job completion
-
Injuries reported by those who are about to retire
-
Employee delaying or refusing to have his/her injuries diagnosed to confirm an injury
-
Conflicting descriptions of accidents in the employer's report and medical evaluation
-
Injuries inconsistent with the nature of the business or job tasks
-
Date, time and place of an accident are unknown, or report of an injury is immediate
-
Employee cannot recall details of the injury
-
No witnesses are available to discuss the incident
Desperate Times...
Fraudulent Employee Measures
As layoffs continue to be prevalent, many employees are resorting to theft to cushion their personal reserves. Employees may also be tempted to steal from their employers out of resentment as a way to reap compensation for doing added work that was once completed by now terminated employees. In addition to stealing money, employees may take electronics, food or conduct personal business on company time (known as "time theft").
To prevent these types of activities:
-
Increase the frequency of your internal audit process
-
Increase the oversight of your employees
-
Reconcile bank statements immediately
-
Add surveillance cameras (to avoid damaging employee morale, do this conspicuously and tactfully
-
Establish a fraud hotline for employees to call and report suspicious behavior
|
|
We have the answer for when the weather slows you down but your insurance payments
keep going.
Eastern Michigan Agencies, Inc. has teamed up a premier local payroll provider with an A+ rated insurance carrier to offer you a Worker's Compensation and payroll package tailored to your business' actual payroll schedule. By taking advantage of this great offer, you benefit from a seamless payment process and a premium that matches your workload - large or small. Plus, you qualify for the following exclusive benefits:
- Premium payments based on actual payroll in each cycle
- Improves cash flow
- Minimizes risk of audit adjustments
- No down payment
- No financing required
- Automatic premium deduction
- Great for seasonal businesses
If a healthier cash flow and simpler premium payment process suit you, try our insurance and payroll solution on for size.
|
Remember, We Are Always Looking for Referrals!
We will send you a small Thank You gift for each referral we receive. |
The Holiday Season is a special time of year to remember those who are close to our hearts. May your days be bright and your hearts be light. Remember, make merry not just on this wonderful holiday, but all through the year.
Happy Holidays from Eastern Michigan Agencies!
|
