We all want to believe the best about our team, but even great workplaces can face dishonesty. Whether it’s cutting corners, misusing company resources, or outright theft. Detecting early warning signs isn’t about becoming suspicious of everyone; it’s about staying alert, protecting your investment, and ensuring fair play for the honest employees who make your business thrive.
1. Watch for Lifestyle Mismatches
If an employee’s lifestyle suddenly leaps ahead of their known income — flashy purchases, expensive travel, or unexplained cash flow — it might be coincidence… or it might not.
2. Pay Attention to “Overhelpfulness”
Someone who insists on handling tasks alone, resists sharing responsibilities, or works odd hours when no one is around may not just be “dedicated.” They could be creating opportunities to hide irregularities. Transparency and shared accountability are your best safeguards.
3. Check the Books for Tiny Anomalies
The big frauds often start small. Look for:
- Unleaded fuel on the company fuel cards when all your vehicles are diesel
- Disproportionate spend by one person on company charge accounts (e.g. fuel cards, Bunnings trade accounts, etc)
- Frequent voids, credits, or refunds processed by the same person
Most issues, by the time they get to me, have been going on from a long-time, and the losses found can be astronomical.
4. Beware of Defensive Behaviour
When questioned about irregularities, an honest employee will typically help clear things up. A dishonest one may become unusually defensive, evasive, or quick to blame others. Trust your instincts if the reaction feels disproportionate.
5. Use Systems, Not Suspicion
The best way to protect your business isn’t by distrusting your staff — it’s by having clear systems that make wrongdoing difficult. This includes:
- Segregating duties (no single person controls both payments and records)
- Conducting random audits/spot checks
- Installing proper stock control and point-of-sale systems
When the rules are clear and the processes transparent, there’s far less room for things to go wrong.