Let’s think more about how hard it is preventing China fraud. China briefing has an excellent blog up on the fraud problem in China. It is very worth reading.
We see they make good recommendations on how to limit risk. In organizations I have led, I have always felt it my job to avoid tempting people to steal.
Nonetheless, no company should be run like a prison camp where you expect people to test every measure for gaps. Without professional hiring, you likely need to create a prison camp system. This is because you are hiring people with intent to cheat you without knowing which they are.
Or you can institute all the rules China Brief mentioned plus many more and still not know how the fraud will occur and whether it will land you in jail or just lose you money.
We see that an ounce of prevention is much better than any weight of cure when it comes to compliance and fraud questions in China. See also 12 Reasons Why Recruitment in China is Weak and What We Can Do.
Preventing China Fraud Definitely Best Plan
You cannot hire talent who knows how to talk and then say first trust until he or she breaks trust. Such people will use you util it does not work out and then go to the next company. They are regularly available in th market and so will come to you. Oh their resume will say they spent at least 5 years at every place they joined. It is so easy to write on resume and tell stories about in the interview. We send such people home to consider changing their ways. Howver, they and we know the bulk of recruiters will pick them up and send them to the next willing company.
So the fraud goes on and matures. Due to how prevalent it is, it is common for Western managers to finally, belatedly, fire the fraudster. Following that, they unknowingly hire another fraudster to take his place, and the cycle continues.