Identifying and Mitigating Fraud Risks in Remote Work Environments

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Identifying and Mitigating Fraud Risks in Remote Work Environments

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Remote work has become a blessing for companies and employees worldwide because of its many benefits. But, like with everything else, there's bad that comes with the good. Explore the challenges and dangers associated with remote work, and discover the solutions that can help mitigate its more severe risks.

Challenges Associated With Remote Work

Remote work setups offer employees a comfortable working environment and work hours. Firms worldwide recognize the advantages of remote work, so much so that a study estimates 32.6 million Americans will be working remotely by 2025. However, organizations that use it as a temporary work setup without considering and addressing the potential risks are exposed to many dangers:

  • Fraud: Some remote employees take advantage of the flexible work setup to commit fraud, cheat on their timesheets, and steal corporate data and other sensitive information. Dishonest employees tasked with payroll seek ways to circumvent workflow processes, sometimes colluding with other parties to get away with their crimes. They have free rein to commit these dubious activities since supervisors cannot monitor them during work hours, and businesses skimp on management and accounting tools.
  • Low productivity: Many remote workers feel they can do whatever they want while on company time. Some prefer to do errands while logged into work systems, while others pursue leisurely activities without regard to productivity. This can incur substantial losses since they're paying for supposed hours rendered but instead get substandard work and low productivity.
  • Data theft and other cyber threats: While many remote workers are honest with their work hours and do everything by the book, their lack of cybersecurity knowledge still gets the best of them. Threat actors take advantage of people's lax security practices to steal their credentials and access secure work systems. Weak passwords and stolen credentials accounted for over 80% of confirmed data breaches in 2021, making data theft a serious concern for any organization adopting a remote work setup.

How to Manage Remote Workers and Prevent Fraud

Adopting a proactive stance in managing workers and fraud prevention is an excellent first step in safeguarding a brand's interests. While remote work poses unique challenges to enterprises across all industries, new mindsets and tools help mitigate the accompanying risks. Here are several of them.

Use Time-Tracking Software

New time-tracking software allows management to monitor their remote workers' activity and productivity levels where they are. Programs with unique features like activity detection and logging let supervisors see what their staff does during work hours.

Timesheet functions also enable management to process compensation and avoid payroll fraud accurately. Biometric authentication can support time-tracking and monitoring software by verifying user identity in a system to prove their presence and actions if fraudulent activity occurs.

Implement Flexible Working Schedules

Introducing flexible working schedules can help reduce time theft cases among employees. Workers who feel they can move around less critical work to fit their schedules can focus more on their tasks instead of writing idle hours off as work rendered.

Managers can use a flex-time program to enable people to work when they're most productive so long as they commit to their daily tasks or goals. This method can prevent employee burnout and alleviate pressures pushing them to use time theft and other fraudulent activities.

Provide Office-Issued Equipment and Devices

Many remote or on-site workers don't prioritize updating their work systems because they feel it's added work. Other reasons include a lack of security knowledge and technical know-how. Companies should consider providing office-issued devices like laptops and mobile devices linked to centralized command and control so IT departments can stay on top of crucial security and performance updates. Malicious third parties can sneak into outdated personal equipment connected to unsecured networks.

Office-issued equipment with the latest software, security programs and authentication features can help prevent data breaches and other cyberattacks. Providing tech can also increase employees' morale since they have the right tools to work on their daily assignments and achieve departmental goals.

Develop a Culture of Accountability

While the honor system works for some, it may not be enough to deter employees with a hidden agenda. Drafting strict work rules and regulations can help prevent fraudulent activities among staff even when they work remotely. Management must specify the rights and wrongs of remote work conduct and etiquette, and make employees read, understand and sign them.

A culture of accountability comes from within any organization. It must be part of the work culture to ensure every team member does their best to produce quality work and avoid suspicious work practices. Supervisors can facilitate frequent check-ins with employees to see what they're doing and how far along they are in their daily tasks. Setting clear guidelines and expectations can help boost productivity and build trust in both parties.

Using Technology and Excellent Management Techniques to Prevent Fraud

Digital workplaces evolve alongside the business landscape. Companies should be aware of the changing trends and equip themselves with tools to help them manage their remote workers to improve productivity, and avoid costly data, time and intellectual property theft. Business leaders must invest in building air-tight management systems to ensure their organizations and teams experience continuous growth.