Due to the temporary return of Japanese employees due to the coronavirus pandemic and the recommendation to work from home to adhere to protocols, online approvals and email communications are increasing. Are there not more inadvertent confirmation mistakes than when you used to come to the desk to get approval directly, give an explanation, and sign? It seems that humans are able to memorize and confirm details better when they use two or more of their five senses at once. Visual, auditory, and sometimes tactile verification (such as tracing the text with your finger) tends to be more accurate than silent email verification using just your eyes. I have heard of several cases in which employees who detected gaps in this kind of lax confirmation committed fraud and were shocked when it was discovered. How can we prevent fraud in this era of coronavirus?

[Visualization of authority and flow]

Fraud occurs when there is an environment where fraud can occur. Of course, the employee who committed the fraud is at fault, but the company is also to blame for creating the environment in which the fraud could take place. Very few employees join a company with the intention of committing fraud. In order to avoid hiring employees who join the company for fraudulent purposes, it is also possible to contact their previous employer and confirm the reason for their resignation. You start a job with the intention of working hard, but then you suddenly become discouraged when you see that there is a possibility of earning more than just working hard somewhere. If I think I'm going to be found, I'm afraid and hesitate, but if I'm not sure enough or if I think I won't be found, I tend to take the next step. The first thing you need to define is payment authority and approval flow. The level of the position with authority to make decisions varies depending on the content, amount, etc., so we recommend that you clarify this and clearly state it in the format for obtaining approval. It is also necessary to visualize the order in which approvals are obtained, and to strictly prohibit approvals that are skipped even though prior approval has not been completed. It may be difficult to distinguish backdated approvals between PDF and stamps. Another preventive measure is to check that the e-mail sending date and format approval date match.

[Surprise check]

The most effective controls for preventing fraud are those that make employees feel that they are being watched. Of course, it is important to perform things regularly such as financial statements, inventory, and internal audits, but occasionally checking them suddenly can be effective as shock therapy. Even if it's not a big confirmation, you can prevent fraud by suddenly asking someone to bring some documents or checking your petty cash balance. Even if you don't have to check, just calling out to them and looking at their faces makes a difference. Neglect and indifference are the most likely triggers for fraud, so let's always keep this in mind and start by having a conversation.