Fraud Prevention

Fraud Prevention Services

There is a need to ensure employees and customers are confident in reporting potential fraud and corruption in your workplace.

The ACFE 2020 Report to the Nations – Asia Pacific edition highlighted tips were the most effective method of identifying fraud and corruption in the workplace. Tips accounted for 44% of reports leading to uncovering fraud and corruption. 

The top three sources of “tips” were employees (48%), customers (28%), and anonymous parties (20%). 

The report indicated detection by tip was twice as likely in organisations with hotlines (53% compared to 24% without). 

There was also information on the effect of employee fraud awareness training on hotlines and reporting. Tips were more than twice as likely in organisations with employee training in preventative measure for fraud and corruption. 

Prevention can be increased when firms advise suppliers and contractors of a zero fraud and corruption regime. 

It is also important to recognise tips were the most common detection method in small to medium business enterprises. 

Another important prevention measure was a code of conduct or a clear policy outlining the expected behaviour of employees, suppliers, and contractors. 

Another consideration is the rotation or changing of responsibilities of persons in key positions such as accounts payable, goods receivable, salaries, and expense oversight. This is difficult in smaller companies but there is a need to be conscious of the risks and conduct snap audits of these areas. Compliancy can destroy your business. 

A prevention measure is to consider the following “red flags” when assessing employees:

  • Living beyond means (33% of offenders)
  • Unusual close association with vendor/customer (22%)
  • Employee in financial difficulties (19%)
  • Addiction problems – drug/alcohol (13%)
  • Control issues – does not want to go on holidays or share duties (10%).
Do not take things for granted – allow ACCA to conduct an independent review of your prevention measures. Contact us for a free survey.

Remember, corruption has a devastating impact on the workplace. Employees are shattered by the allegations as they lose faith in the integrity of the organisation and may, in some instances, be subjected to ridicule as the corruption is exposed in the media.

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