"Another word for fraud is a con. That comes from an old term called a confidence man. Someone who builds up your trust. Sometimes you hear people say don't try and con me. It comes from that word confidence," says NIU Professor and Certified Fraud Examiner Dr. David Sinason. That trust is how many employees get away with stealing.
There are several ways that managers of corporations or cities can prevent fraud.
"Separation of duties and what that means are the people who are doing the record keeping should not be the same people doing the authorization," says Dr. Sinason.
Managers should also ask questions if employee actions or purchases seem out of the ordinary. Complaints and tips are the number one identifiers of fraud."You have to take a proactive approach here. You have to have your eyes open, you have to be unfortunately thinking about the bad things that can happen," said Dr. Sinason.
Experts also point out a friendly reminder, if it sounds too good to be true it probably is.
Copyright 2016 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.