Risk Management Alert: Three Key Characteristics to Building an Effective Fraud Hotline Program [White Paper]
January 5, 2017
How Forward-Looking Executives Are Helping to Identify and Prevent Fraud Within Their Organization
For today’s organizations, tips are essential for identifying workplace fraud. In fact, tips reveal nearly 40 percent of fraud cases, according to a recent Association of Certified Fraud Examiners study. Further, almost half of these tips are reported by employees, followed by vendors and customers. That means employees are often an organization’s first—and best—line of defense in identifying and stopping fraud.
However, while employees should view their workplace as conducive for reporting suspected fraud, some are skeptical that getting involved is in their best interests.
For example, with many incidents of whistleblower retaliation being publicized and a fear that reports will not be taken seriously, not all employees feel they can come forward with information. Not only does this allow unreported fraud to continue, but also encourages potential fraudsters to commit crimes that they would otherwise be afraid to carry out.
Ultimately, the goal is to create a safe setting where employees feel responsible and empowered to report fraudulent activity. Therefore, many executives are working with an advisor to employ a comprehensive fraud hotline program with three key characteristics to mitigate risk, build a sound governance structure, and create a supportive work environment.
By incorporating independence, anonymity, and an anti-fraud tone at management level, organizations are more efficiently identifying fraud, establishing comprehensive anti-fraud controls, and improving transparency and communication among all levels of the organization.
Download this white paper to learn more.