“Seasonal Workers Can Lead to an Increased Risk of Fraud” by Kristen Culp | Associate – Tax

Hiring seasonal workers can be a big advantage for industries with peak sales periods. Particularly in Northeast Ohio, the construction, real estate and recreation industries benefit from an in-flux of seasonal workers during the summer months.

Short-cutting Policies & Procedures

During these peak times, companies may condense their onboarding process and loosen their policies and procedures for these employees to accommodate customer demand. However, with the absence of pre-employment screening, checks and balances, and formal training, companies with seasonal staff often are at a greater risk for fraud.

Short-cutting the hiring process is one of the biggest contributors to an increase in fraud from seasonal workers. Forgoing pre-employment screening may result in a company hiring employees with a fraudulent past.   A lack of formal training may result in employees not being properly trained in fraud prevention techniques, thus increasing the risk of theft. Seasonal workers can also feel added pressure to steal cash from their employers to supplement their time-limited income. In a previous article, Three Reasons Why Employees Commit Fraud…and How you Can Stop them, we review the leading factors in the fraud triangle.

These short-comings can hinder the performance of an organization and affect the morale of the permanent staff. Adequate internal controls are essential to the prevention of fraud and theft, and to protect the important assets of the business. Contact our forensic analysis team to learn more about seasonal fraud prevention and protection.