Your company has a thief; how do you handle it?
A recently published report - The Annual Fraud Indicator 2016 - says the cost of fraud in the UK is now estimated to be as high as £193bn per year, with the private sector coming under the biggest attack from fraudsters, with both SMEs and large enterprises losing an estimated total of £144bn a year.
The report states that by far the biggest source of fraud for these businesses relates to procurement – an enormous £127bn. Procurement fraud includes crimes such as the submission of false invoices or the awarding of contracts in exchange for bribes. The report highlights that procurement is so vulnerable because of the sheer size of expenditure which it accounts for, as well as the high volume, low value nature of transactions and the breadth of fraudulent activity it is susceptible to.
According to corporate fraud investigator Paul Wiseman, employee theft and fraud are the most serious threats to the success of businesses. “You won’t know it yet, but one of your employees is probably stealing from you,” he says.
Wiseman, whose corporate investigations company specialises in investigating fraud in companies, usually by employees, works predominantly for small and medium sized enterprises. “Losses by businesses are estimated as ranging from 1% to 6% of turnover,” he says.
But why would anybody in your firm want to do that to you? You run a sound profitable business and pay your staff well. Well, according to Wiseman, this chap, although he doesn’t show it, thinks you’re a bit of an idiot. “In his eyes you are too demanding and you don’t treat him with the respect he deserves,” he says. “He thinks he’s underpaid and overworked and that you drive around in a better car than he does, you live in a bigger house in a better part of town. You also disappear, sometimes for days on end, while he grafts away making you more money, without any thought that he also has a family to support and expenses to pay. Yes, he thinks he has every right to steal from you, he deserves the extra. And after all, you have so much money, you probably won’t even notice if he takes just a little bit of it.”
What can you do about it? As a business owner what can you do to reduce losses incurred by dishonest employees? “Pre-employment background checks are a good way to start,” says Wiseman. “This will confirm the information given to you via references and may potentially highlight a potentially rogue employee right at the beginning.”
Have more than one person ‘doing the books’. “This will reduce the likelihood of that “indispensable treasure” controlling the finances,” he says. “Put in password protected controls so that staff only have access to documents and data that is necessary to do their job. You should also set up a regular series of spot checks – random checks on inventory, payroll, petty cash etc. Finally, you should think about outsourcing certain financial functions such as payroll for example.”
All of the above are simple measures that are easy and inexpensive to implement. More than anything they could go a long way toward saving your business should you find yourself on the wrong end of a fraudulent employee who is abusing your trust and syphoning-off funds without your knowledge, but what do you do if you discover that somebody in your organisation is a thief; how do you handle it? What do you do? Call the police? Call the thief into the office and dismiss them? Call your solicitor? Call your accountant?
“You could do all of those things and then still get it horribly wrong,” says Wiseman. “For example, the police may only prosecute for a fraction of the loss, or you could end up being taken to an Employment Tribunal by the thief. Furthermore, your solicitor may not be experienced in employment law, criminal law or the recovering of money.”
If you discover that you are a victim of fraud by one of your employees, you are not alone. Wiseman says that in most cases when a fraud is discovered, you have a pretty good idea of the identity of the thief. “This is a very dangerous time for you, and you need to use your head and dust off your plan,” he says. Plan? Who actually makes a plan for such a thing? If the sums involved are not particularly high most firms will usually just dismiss the employee and move on, but what if the sums involved are potentially ruinous for the business? In this instance Wiseman says this is when you really do need to call in an expert in fraud investigation who will work with you to do the following:
- Find out how much money is involved and how it was taken.
- Find out if anyone else is involved; don’t forget it could be someone from outside of your company.
- Begin the disciplinary process; remember you don’t want end up in an Employment Tribunal, so do this under ACAS guidelines.
- Gather evidence to criminal and civil court standards.
- Perform an asset assessment on the thief – how much is he worth?
- Contact the police.
“When I go and see the police I take all my evidence with me; that means Section 9 Witness Statements and Exhibits, all in a format that they use. You have immediately saved the police a lot of work, and it goes a long way to getting them “on side”,” states Wiseman. “Remember, the average policeman does not want to investigate commercial crime, he has very little training in fraud, and he is outside his ‘comfort zone’. A lot of companies choose not to prosecute for various reasons, but you should still gather evidence to a criminal standard, just in case you change your mind.”
Wiseman says if you do change your mind and want to prosecute, this is where your lawyer comes into play; because now you are going to begin the process of getting your money back including costs. “That’s why one of the first things we did was to undertake an asset assessment of the thief,” he says.
There are a few approaches you can take to try and recover your losses. If the police are involved, you can use the Proceeds of Crime Act 1988 and amended 2002. The CPS Barrister will apply to the Court for a Restraint Order on the thief’s assets; followed by a Confiscation Order after conviction.
“This only happens if the amount stolen is over £5,000,” Wiseman says. “Unfortunately it is not uncommon for the CPS to accept a lesser amount to gain an admission, and so save the cost of a trial. So much for looking after the victim.”
The other way is to simply sue the thief in the Civil Court. If you’re worried about this from a costs point of view; remember ‘the plan’ you made at he start because you now know what the thief’s assets are.
Wiseman says if the thief is convicted in a criminal court, this effectively takes away any defence they may have in a civil court. “If the thief has not been convicted in a criminal court, this should not deter you from taking action because the level of proof needed is much lower, and if the investigation is done properly and compliantly it should not present a problem,” he says.
There is also a third way which should always be considered where the thief may wish to avoid costs being awarded against them in a civil court and be willing to negotiate a return of the money he stole, plus the costs incurred managing the issue.
And there you have it. It all sounds a bit far fetched, but this is a major problem for the private sector and it is really is going on right now; right under our noses - every day.
I will leave you with the thoughts of the American economist Alan Greenspan who famously said:
“Corruption, embezzlement, fraud, these are all characteristics which exist everywhere. It is regrettably the way human nature functions, whether we like it or not. What successful economies do is keep it to a minimum. No one has ever eliminated any of that stuff.”
And the wiener is…
Industry awards can sometimes be a bit of a cynical experience. The majority of these events are run by trade press publishers looking to extract a few extra pennies from the market, with winners tending to be representative of the individual category award sponsors own customer base. From experience the majority of awards events that I have attended seemed to be nothing more than a good excuse for a pissed-up food fight and an all-round back-slapping session in the bar afterwards, and there is nothing wrong with that if this is your thing, but it’s not for me.
So when I was invited to attend the recent 2016 BSGA British Sign Awards in Nottingham I was a somewhat concerned that this event might turn out to be like any other, but I needn’t have worried because it wasn’t - at all. In fact it was bloody good and I was really glad I made the effort to attend because the BSGA Awards - now in its third year - sets out its stall by recognising and celebrating the outstanding skills and creativity of our UK sign businesses. What was also refreshing was the awards are ‘open-to-all’ and as such membership of the BSGA is not an entry requirement. If you produce good work and you think you would like a little recognition for it - send in an application. It’s that easy.
Awards are presented in a total of 15 sign categories the winners of each category are also put forward to be judged for the overall ‘Sign of the Year’ award. According to the BSGA, winning an award can have a dramatic effect on a business both externally, for both current and prospective customers, as well as internally as a major boost to staff morale - and I couldn’t agree more.
The best thing about winning something is telling everybody about it. Some companies go as far as adding the award to their headed stationery (a good idea) and some even send out press releases to the ‘other’ trade press that didn’t present their award (a bad idea because nobody else will touch it), but you have to admire their enthusiasm. However, with the BSGA Awards, everybody is interested because the BSGA is not a trade press publisher, and it is not an exhibition organiser, nor is it likely to be because if it was it would lose the very thing that makes it special - its independence.
The BSGA is run by a Council of elected members, of all whom serve in a voluntary capacity, with the various activities of the Association organised by Committees, each Chaired by a Member of Council and each includes members and advisers co-opted for their specialist knowledge. Put simply, the BSGA is run by a body of people with nothing but the best interests of the industry, and those working in the industry, at its heart. The day-to-day business activities of the association are managed by a full time Director and associated staff, and without whom the whole thing wouldn’t function.
Membership of the Association includes every type and size of sign business, from craftsman sign writers, through businesses that manufacture architectural and illuminated signs, to those that specialise the production of vinyl signage, vehicle liveries and digitally produced signs.
The BSGA also represents a number of additional sign related business sectors including sign installers, designers and specialist consultants as well as businesses that manufacture and/or distribute materials, equipment and services used by sign makers.
So industry associations are important. Many join and never call upon them for help, but a good association is there for both the good times and for whatever reason when the shit is hitting the fan and you have nobody else to turn to. Membership can also provide help and advice with all aspects of business law, along with a unique insurance scheme designed to meet the needs of sign makers, access to Government funding, as well as a range of supplier discounts for members.
What I would really like to see in the near future is the BSGA Awards to be tied-in with an evening event held during the Sign & Digital UK show. I think both parties would benefit from the publicity surrounding such an occasion and, in my opinion, this would lead to a broadening of the award categories as well as boosting ticket sales for those companies wanting to get behind the event and support it by booking a table with which to entertain key customers during the trade show.
The real winner here would be the industry at large. Read more about the winners here.
Why settle for latex?
The topic of latex inkjet printing can be a funny old thing at times. There are many who love their latex printers but there are also those who don’t. Let’s face it, most people who have invested in a latex printer probably made the decision to do so based on environmental concerns (my customers will love me more for having a latex printer over a solvent printer etc.) and they fell for much of the hype that HP fed the market.
For example, in addition to an outstanding global PR and marketing campaign, HP published white papers, printed literature, developed micro websites, and maximised every facet of social media to promote the environmentally related benefits of latex printers.
But are they really all that environmentally friendly? It’s a tough one to call in my opinion, but with HP latex printers still requiring phased electricity to power the heater and the fans to dry the prints, a machine of this type is already burning way too much energy for anyone to be really all that environmentally conscious in the first place.
The thing was, users never noticed anything untoward at first. After all, you do your homework, research a printer, make the investment, instal it in a corner and get the fastest ROI you can possibly achieve. You’re not thinking about anything else until the electricity bill comes in and you can’t figure out how come your energy bills have shot up so much, so this is something that tends to creep up on users after they have been running latex for a while.
The other excellent job HP did was the way it promoted its water-based latex inks. Not only do the inks provide you with an improved printing environment without the smell of solvent, but they have been certificated by just about every environmental agency around the world. So water-based latex inks are better right? Err no, not really. They are not better; they are simply water-based. With a water-based system you are never going to achieve the sort of colour gamut and density that a solvent-based inkjet printer can achieve. This is where the saying that solvent based printers are considered to be more for the pros comes about because the graphic arts professionals are going to be more discerning about print quality, density, and vibrancy.
Solvent printing does do quite a few things that really work well for very high end print jobs, so they have their place. This type of printer is going to find itself installed at a graphic arts company that does work for advertising, or window displays for high-end retail brands where the print standards are top notch and price isn't usually a consideration. Many latex users tend to be smaller shops where quality is not considered to be as paramount.
In my own experience I have found the camp in favour of latex to be often divided and have met a lot of graphics printers over the years who had bought a latex printer only to regret their decision. They found that after running it for a while and trying to produce the same type of work on the printer that they were used to running on a solvent machine, they couldn’t. Like the majority of printers when they bought the printer they didn’t give much of a thought about environmental issues at all; they were too busy thinking about how much more business they could pick up because they could play the eco card with their customers - and we all know that ploy hardly works anymore these days.
Nobody likes to ever admit to buying a turkey either, especially when it’s not at Christmas, and as such I tend to think that today there is an undercurrent of graphic arts users who are now beginning to think about stepping away from latex printing to return to the folds of solvent printing once more. And what with the way that eco-solvent inks have taken off recently, there are plenty of good reasons to do so.
This is why I think Roland DGA in America has decided that it is high time it slipped off the gloves and has started to give latex printing a bit of a bashing. The company has set up a portion of its American website under the heading Never settle for latex’ where it calls-out latex printing for being too expensive, piss weak and with a colour gamut that is as flat as a witches tit; or words to that effect. And why not? I think many solvent printer manufacturers were initially scared of being seen to be anti-latex, principally because they were afraid that customers might perceive them to be un-environmentally friendly by their speaking out.
I think Roland DGA has had a whiff of the first wind of change and is acting accordingly to attract users who are either fed-up with latex or are thinking of buying into it. Either way it’s a very plucky move and I hope that more graphic arts printers take the time to consider the wider implications of running water-based latex technology before making any investment in their first wide format printer.
Rio Olympics puts digital textile printing firmly on the map
One of the key things to strike me about the TV coverage of the 2016 Olympics from Rio de Janeiro in Brazil is how much the Olympics have become a showcase for the graphic display industry.
Sporting arenas in general are often dull looking concrete structures, but given that the Olympics attracts a global TV audience of anything between 3 - 4 billion viewers, and the fact that no host nation wants to be remembered for delivering a dull affair, the host tends to spend an inordinate amount of money to make everything look pristine for the TV cameras.
Take for example the beach volleyball competition. Perhaps no other sport is more closely associated with Rio de Janeiro than beach volleyball, and the men’s and women’s competitions are taking place on the famous sands of Copacabana beach, so the arena needs to look just as good as the beach itself, and it does, thanks to a liberal dose of digitally printed textiles. In fact, as far as I can tell from the pictures on the telly, printed textile display graphics are being used everywhere. More so than in London in 2012.
It has only been four years since London was the principal Olympic city but the difference the years make is clear to see. Back then we were using a lot of vinyl and banner mesh for the background graphics, but in Rio the theme of the games is all about ecology, and what better way to demonstrate how the games can have a low carbon impact than by using digitally printed textiles. For a start digitally printed textiles are just as vibrant and look fantastic when properly erected. Textile mesh is also more forgiving outdoors and as such the Brazilians appear to be making good use of their natural surroundings, not that the host nation has a good track record when it comes to pollution and waste disposal, but what the heck, the graphics in use at the Rio games are bright and colourful and look stunning on the TV.
Now I am no textile printing expert - far from it - but I know a man who is. Magnus Mighall is the managing director of textile printing specialist and digital textile re seller R A Smart and, in my opinion, what Magnus doesn’t know about textile printing really isn’t worth knowing in the first place.
With over 40 years year’s experience in textile printing, including the past 18 years utilising digital systems for textile applications, RA Smart is in a unique position to offer help and advice to their customers whether in the purchase of equipment or taking advantage of the company’s digital print bureau facility.
I was fortunate to be invited to meet up with Mighall at the company’s Macclesfield premises and given a thorough introduction to digital as well as traditional analogue textile printing processes. A visit to RA Smart really is an educational process and as such my head was spinning on the drive home later that day. What I learned from Magnus is that while it is true to say that you can print onto textiles with ‘non textile’ inks such as UV or latex printers and the results achieved may be acceptable for a limited market, but when printers and end users compare the results with a ‘true textile dye’ it is clear to see the why the printed textile industry has been utilising these dyes for generations, and more recently why these dyes have been adapted and modified to allow their use through digital systems. In short, if you want a high quality digital print onto a textile you need to use a textile dye to achieve the desired result.
Furthermore, according to Mighall, there are lots of noises out and about regarding the green credentials of digital systems; digital textile printing scores a big plus here - which brings me back to the Rio Olympics. All the ink chemistries used are water based and with the fact you only print what you want and do not have to mix more ink than required, as with traditional screen printing, digital printing onto textile has got to be one of the most environmentally sound methods of producing printed textiles. With more and more re-cycled polyesters and organic natural fabrics becoming available, end users really can claim their products are printed in an environmentally sound method.
Suffice to say, the results can be stunning and the applications are endless, from high end fashion, household textiles, fashion accessories through to specialist wall coverings etc. Whatever the requirement, a turn-key solution will be available and with the right advice and guidance, prospective users of textile digital printing technology should not be put off by what may seem to be an initially daunting prospect. One only has to look at the potential benefits they can offer their customers with value added products which offer something different, are environmentally sound and quite unique.
Windows 10 ate my computer
I hate Microsoft. I really do. My high spec Alienware PC was just two years old, ran like a dream and was barely out of warranty when I first started seeing those pesky little pop-up’s appearing in my notification tray that said: ’Your computer has already been tested and is ready to install Windows 10’ on a daily basis. ‘Upgrade for free and if you don’t like it you can always roll back to Windows 7 within 29 days’ it said reassuringly.
So I upgraded, and just like Microsoft said it only took an hour of my time, and yeah, if I didn't like it I was confident I could simply roll back to my old operating system and all would be fine. Only it wasn’t. From the get-go Windows 10 was a bloated, sluggish, laggy operating system that was a royal pain in the arse to use. I ran it for about two weeks and almost every day there seemed to be a problem with it, but I stood by my decision thinking that this was just teething problems and that things would settle down pretty soon. After all, Windows 10 is a movable feast because there isn’t going to be a Windows 11. What could possibly go wrong? And then it started crashing. A lot. That’s when I decided I didn’t like it and rolled it back to Windows 7. It only took about an hour, just like Microsoft had said, and everything seemed fine. For a while anyway.
Three days later the computer crashed again, and again, and again. Every day it would crash without warning. And every day I was convinced I could repair it. After all, I am a master of the PC. I can fix anything within reason. Internet research showed it was a driver error of some sorts, so I updated every driver I could find. Still it crashed. Nothing I did seemed to resolve the problem. I ran every kind of diagnostic and stress test available and it would still crash, often during the diagnostic.
Whenever I attempted to boot it up it would just sit there wheezing like an iron lung gone badly wrong, its little light blinking on and off in time with a wheezy cough as it would attempt to start. And then one day it caught. Booted up like old times. It stayed on too, and nothing I could do would entice it to crash. I had spent the best part of a week buggering about with it and was delighted that my tinkering had not been in vain. However, just to be certain I ran a further diagnostic. That’s when I got the message: ‘Back up all of your data immediately as your hard drive is about to fail’. I hate you Microsoft. I really do.
It was at this point I vowed never to put another coin in Microsoft’s pocket and went out and ordered an iMac, which then took a week to be delivered, but here I am, sat in front of a giant screen while typing on a minuscule keyboard and trying to navigate my way around the system using a touch pad instead of a mouse. It’s a nightmare! Yes my shiny new iMac is a thing to behold. At last I can finally sync my iPhone with a system it was originally designed to work with. I can send text messages from my desktop, use FaceTime to call the kids to dinner and all sorts of other cool yet useless stuff that I have not begun to get my head around. This is mostly because I am still struggling to find the delete key on my tiny keyboard, or the @ symbol - ah there it is!
The worst part about suffering from this type of computer based culture shock is having to look everything up on google first. I can’t do a thing without google! Take this column for instance. I have been at this for over two hours now because this is my first foray into using Pages - Apple’s version of Word - and I am all over the place with this bloody keyboard. That said, every day is a winner and I am learning something new with every step. And there you have it. Microsoft, you can take a running jump as far as I am concerned. I am now a fully fledged Mac user and I like it.
That reminds me, I have to go and cancel my daughter’s monthly subscription to Microsoft’s Xbox Live gaming console service. It might cost me a replacement Sony PS4 in order to placate her but at least I won’t be putting more money in Microsoft’s pocket.
So if you have not yet upgraded to Windows 10 - don’t. Wait instead until you need a new PC, and then go and buy a Mac.