Bob Jain: What Is Friendship Fraud?

On the surface, it seems easy enough to hire someone who’s close to you. After all, you know them on a personal level and it’s possible that you view them as hard workers as well. Even though this might seem like a good idea, it might be all that’s needed for the case known as friendship fraud to rear its ugly head. For those who are unfamiliar with this particular type of fraud, here are a few key details that Bob Jain can tell you about.

For those who do not know, friendship fraud occurs when someone is employed simply due to a personal connection. Even though the new hire might be a good worker, the worst cases involve the hire in question taking part in immoral ways. For example, someone might be given control of finances, only to use what’s brought in to inflate their paycheck on a weekly or biweekly basis. This is the main idea of friendship fraud, and it’s a serious matter that Bob Jain can help you better understand.

You might be curious to know what friendship fraud stems from, but the main cause seems to be a strong sense of loyalty. For example, someone who has many friends might start their own firm. In order to round out the number of people employed by the firm in question, it’s possible that he or she will bring on a few of their friends. This can result in serious problems later on, with fraud being just one example, which is why certain methods should be highlighted by Robert Jain Credit Suisse.

In order to prevent friendship fraud from occurring, you have to hire based on multiple elements. Not only should you downplay personal connections, but you must focus on skill sets and prior work experience alike. When you do so, you have a better understanding of how reputable a potential hire is. In addition, you can see how much they’ll help your company grow in the long run. According to names such as Robert Jain Credit Suisse, job performance matters.

One of the quickest ways for a business to fail is by nepotism taking over. The best attorneys can say the same, and the fact that friendship fraud exists makes this matter all the more concerning. However, you can clearly see that there are ways to prevent this from occurring. While most of this comes from common sense, you’d be surprised by how often it’s unused. When you run your business with a clear mind, fraud stands a lesser chance of occurring.

Go to Bob Jain Credit Suisse if you would like further financial information courtesy of Robert Jain.