Fraud perpetrators have one thing in common: they are morally flexible. Some are serial embezzlers, leeching what they can from a victim organization before moving on. Most are otherwise honest people who see the opportunity for easy money, and take it. Often, they learn their trade by accident, when they made an error that slipped by unnoticed or borrowed from their employer and were never questioned.

1. Check your bank statement at least monthly, looking for unusual activity.

2. Review financial data routinely, or have your accountant do it. Accountants with fraud prevention training are more likely to recognize warning signs and identify inconsistencies in your accounting data.

3. Get a pre-employment background check and criminal history check on everyone you hire.

4. Review your credit card bills diligently.

5. Monitor credit card refunds as reported on your merchant bank statement, and restrict who can process refunds on your credit card machine.

6. Make sure employee dishonesty coverage is part of your business insurance package.

7. Enforce proper IT security. Insist on unique user IDs and password security. Limit employee access to data they need to do their jobs – and no more.

8. Consider a hotline. Make it easy for your employees to anonymously report suspicious or inappropriate behavior without fear of retaliation. This protects your business theft, as well as safety issues and HR problems like harassment.

9. Train employees on the signs of fraud and how to report it. This helps develop a culture of integrity and raises awareness of unethical behavior.

10. Be aware of the red flags of fraud perpetrators. The top two are living beyond means and financial difficulties. Others include defensiveness, irritability, control issues, being overly conscientious, divorce, family problems, and addiction problems like gambling, drugs, shopping. One red flag does not define a criminal, but exercise caution if one or more are present.