Overview

There are myriads of fraudulent schemes and activities being perpetrated in today’s world.   As an organization, it is imperative to keep all employees abreast of the most commonly used fraudulent activities.  The more informed your employees are, the greater your chances of detecting fraud and preventing it from effecting your company.

fraud detection and prevention

Corporate Culture

Each person at your company is responsible for detecting and preventing fraud. The corporate culture of any company must be one that is transparent; willing to listen to comments, concerns and recommendations from all employees; and committed at all times to detecting and preventing fraud.

Fraud can have a devastating effect on your company because it could result in significant financial loss as well as other long-term business repercussions such as loss of public trust and market cap implications.  Any allegations of fraud must be taken seriously, with no exceptions.  All individuals—regardless of position, title, or tenure with your company are expected to remain vigilant and report any suspicious activity.

Awareness and Accountability

A vital component of detecting and preventing fraud is creating a message of awareness and accountability.

• Awareness: Employees thoroughly understand the concept of fraud; what it is; resources available for identifying, understanding and reporting it; and other essential components. 
   
• Accountability: Employees need to understand the severe ramifications that will result if they are involved in any type of fraudulent activity.