Detection, revelation and prevention of employee frauds in companies

Self-realization is one of the most important stimulus for explaining the factors that affect human behaviours and these stimulus are always kept under control by ego due to the pressure of society. People try to keep their stimulus and want under control and live within the code of ethics, but enterprises are facing too many frauds that are done by their employees. Employee frauds have been increasing recently and this increase makes the subject more popular. Employees work for companies in return for a fee. An employee may give moral and material damage to the company or do actions that will constitute a criminal offense by doing actions such as exceeding his/her powers to manipulate the company's resources for his/her own benefits, obtaining an unfair revenue, defrauding the company that he/she is working for or misusing of their powers. All of these actions are named as employee frauds. Employee frauds that give offenses to companies, other employees working for the company, the external environment of the company, and consequently the economics of the country, reached serious dimensions recently. Most of the companies that are exposed to employee frauds, makes no efforts to reveal frauds unfortunately they cover up frauds instead of making investigations deeply. Managers have the most important role in preventing employee frauds. Managers must embrace and implement a systematic approach about solving employee frauds. The cost of preventing employee frauds is less than the cost of revealing it so preventing implementations are more economical for companies. As a result of all the explanations that are on the above, employee frauds that target vital functions of the companies, have been examined theoretically and scanned literally. The aim of the study is to examine employee fraud and the result will be used for businesses, investments and third companies which are directly related with businesses and also the government entity which is indirectly related with tax payment. To comprehend the objectives better, the study contains statistics about employee fraud and some true life fraud examples.