The 1st and best China fraud prevention strategy is to hire trustworthy people. Then do not leave open any temptation.
I have been leading businesses in China or running my own here since 1997, These two things are by far the best means.
3rd step. Treat people who work for you well and fairly. The right people cover for people who care for them. The wrong hires just use your kindness and despise you. So the third step cannot cannot replace the first two.
This China Fraud Prevention is Definitely Worth Your Investment
Let’s here talk about hiring management at your company with an eye to prevent fraud. Would that be better than a blind search for the guy with the best resume and interview skill? Yes, and it helped me for many years. However, I discovered that Chinese interviewing skills were too high. So we started to do background checks on all candidates. We discovered that 72% were very good liars and did it to try to get the job offer.
If you hire people whose greatest skill is doing real work, then they will do that for you. If their greatest skill is political talk, then he or she will bring that to your company. It you hire someone who is good at siphoning off money from your company secretly, then they will do that. Be sure it will be hard to cover all the avenues to siphon that they might find. That ability and heart will not show on the resume and interview.
The very best and most capable liars are clearly the most dangerous as they can manipulate you once they know you better inside the company.