woman standing in an office
  1. Be Proactive.
    Adopt a code of ethics for management and employees. Evaluate your internal controls for effectiveness and identify areas of the business that are vulnerable to fraud. Are fraud risk assessments performed to proactively identify the organization’s vulnerabilities to fraud? Are strong anti-fraud controls in place and operating effectively?
  2. Establish Hiring Procedures.
    When hiring staff, conduct thorough background investigations. Check educational, credit and employment history (as permitted by law), as well as references.
  3. Train Employees in Fraud Prevention.
    Do workers know the warning signs of fraud? Is ongoing anti-fraud training provided to all employees of your organization? Ensure that staff members know basic fraud prevention techniques.
  4. Implement a Fraud Hotline.
    Fraud is still most likely to be detected by a tip. Providing an anonymous reporting system for your employees, contractors and clients will help uncover more fraud. Is an effective fraud reporting mechanism in place?
  5. Increase the Perception of Detection.
    Is possible fraudulent conduct sought out or dealt with during or after it occurs? Communicate regularly to staff about anti-fraud policies, ways to report suspicions of misconduct, and the potential consequences.