Corner
loyal, hard-working professionals surrounding you. These
men and women are the eyes
and ears of your organization
– they’re the ones on the front
lines each and every day, and
they are the ones who are most
likely to see or suspect fraud
firsthand.
When was the last time you
said the f-word? I say it every
day – to my co-workers, to my
clients, to rooms full of conference attendees. Sometimes
it even slips out in front of my
family.
Don’t worry – unlike the f-word
you’re thinking about, this one
is safe to say in public places.
In fact, we should be talking
about it more.
But if they don’t know who to
tell, they tell no one. Or, if they
just have a hunch that someone’s committing fraud and no
real, concrete evidence, they
might keep quiet until they’re
sure – which could result in
greater losses
You’ve worked hard to build
your business. You have relationships with your employees
and customers. And it’s terrifying to think that a single f-word
– fraud – could take that all away.
When you give employees an
outlet to report fraud anonymously, you’re helping ensure that they
will feel comfortable coming forward if they notice something
amiss, without feeling like they’re
placing a target on themselves or
betraying a coworker – who may
also be a friend.
Yes, fraud happens. It can even
happen to you.
One of the most effective ways
to reduce your risk of occupational fraud is through a fraud
reporting hotline.
In its most recent version of The
Report to the Nations on Occupational Fraud and Abuse, the
Association of Certified Fraud
Examiners analyzed 1,483 cases
of occupational fraud – 42 percent
of which were detected by tips made
through a fraud reporting hotline.
Numerous studies have shown that professionally staffed, 24/7 hotlines are the
most effective way to identify fraud in your
organization, as it provides employees
with a secure, anonymous way to report
any suspicious activity they may witness.
Internal protection against fraud
Want more tips to reduce
your fraud risk? Check out
www.reacpa.com
Some employers feel that a fraud reporting hotline conveys a message of distrust
in employees … but that’s not the case.
Having a fraud hotline in place only reinforces the fact that there is a team of
Does your organization have a
system in place to identify and
investigate fraud? If not, consider implementing one as soon
as possible to reduce the risk to not
only your assets, but your employees
and reputation as well.
If you’d like to learn
more about fraud
reporting hotlines, visit
www.reacpa.com/red-flags,
and check out our podcast
(Episode 3: Trust Is Not An
Internal Control) on iTunes, SoundCloud
or at www.reacpa.com/episode-3.
THIS IS PART FOUR OF A FIVE-PART SERIES ABOUT WAYS YOU CAN REDUCE
RISK WITHIN YOUR SMALL BUSINESS
Read parts 1, 2 & 3 at www.reacpa.com/small-business-corner-series
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