8 steps to prevent fraud

CRI Group™ offers some basic steps any organisation can take immediately to lessen their vulnerability to fraud from both inside and out. These measures should be followed year-round – but Fraud Week provides a great opportunity to get started. The following are 8 steps to prevent fraud:

1. Take a Proactive Approach to Fraud Prevention

A code of ethics for management and employees will help set the culture and expectations. Conduct regular fraud risk assessments and implementing effective internal controls to help reduce fraud. Find out if your organisation’s compliance program is in the line with worldwide Compliance, Business Ethics, Anti-Bribery and Anti-Corruption Frameworks.

2. Conduct Proper Due Diligence

Mergers, acquisitions and related major business transactions present plenty of fraud risks – some apparent, and some hidden. At such a critical juncture, conducting thorough, comprehensive due diligence is the key to reducing those risks.

3. Be Mindful of Cultural Differences

International expansion is a key goal among many larger organisations. However, fraud and corruption laws, enforcement, and cultural norms can vary greatly from one region to the next. Make sure any move is a good fit, and that risk factors are addressed every step of the way. Also, anti-bribery, anti-corruption standards and best practices like ISO 37001 Anti-Bribery Management System standard will help your organisation stay in compliance across international borders.

4. Conduct Background Checks

Your organisation’s hiring process should include thorough background investigations. Check educational, credit and employment history (as permitted by law), as well as references. Also, conduct post-employment screening to vet current staff. Here are some tips on identifying and preventing employee fraud.

5. Make Training a Priority

Ensure that staff members know the warning signs of fraud, and basic fraud prevention techniques. Customised training programs like those offered by the ABAC® Center of Excellence provide comprehensive learning for employees in the prevention of fraud, bribery and corruption.

6. Provide a Fraud Hotline

Statistics show that tips are the most common reporting method for fraud. Encourage them by providing an anonymous reporting system (a telephone hotline or online portal) for employees, customers, and contractors. It is a positive sign seeing that ethics hotlines are growing in popularity. CRI Group™ encourages everyone to report any wrongdoing. Everyone must seek to maintain transparency to comply with the code of conduct and compliance regulations. Find out on how to set up an Ethics & Compliance Hotline.

7. Don’t Tolerate Fraud

Regular communication is key. Make sure your staff knows fraud and corruption aren’t tolerated and will be punished. When fraud is uncovered, make sure to follow through with consequences for the perpetrator.

8. Get Certified.

A world-recognised standard like ISO 37001 demonstrates an organisation’s commitment to developing effective frameworks to reduce risk. ABAC™ Center of Excellence offers ISO 37001 and other training and certification programs to help organisations get an edge in preventing, detecting and reducing bribery and corruption.

CRI Group™ are supporters of the International Fraud Awareness Week, or “Fraud Week” – a global campaign to minimise the impact of fraud by promoting anti-fraud awareness and education. CRI Group™ is proud to once again be an enthusiastic Official Supporter of this annual movement for awareness and prevention.

If you have any further questions or interest in implementing compliance solutions, please contact us.

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CRI Group™ has safeguarded businesses from any risks, providing investigations (i.e. insurance fraud), employee background screening, investigative due diligence, business intelligence, third-party risk management, forensic accounting, compliance and other professional investigative research services. In 2016, CRI Group™ launched Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management Systems, ISO 37301 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification. ABAC™ operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. ABAC™ Center of Excellence offers a complimentary gap analysis of your compliance program to evaluate if it meets “adequate procedures” requirements under UK Bribery Act, DOJ’s Evaluation of Corporate Compliance Programs Guidance and Malaysian Anti-Corruption Commission. Prove that your business is ethical. Complete our Highest Ethical Business Assessment (HEBA) & evaluate your current Corporate Compliance Program. Contact ABAC® for more on ISO Certification and training.