Anti-fraud 101

Fraud awareness training is a key aspect of any fraud prevention strategy. By educating staff and management on what fraud looks like and how it happens, they become empowered to take action to reduce the risk of it occurring and/or address it in a manner prescribed by the organization.

The most common way in which internal fraud or corruption is detected is by observation and reporting by workplace colleagues of the perpetrator(s). Similarly, the most likely way for externally instigated fraud or corruption to be detected is by an employee of the victim organization, not by the internal or external auditors as many expect. The following statistics are provided by the Association of Certified Fraud Examiners in their document entitled, “Detecting Occupational Fraud in Canada: A Study of its Victims and Perpetrators”:

 

The key objective of anti-fraud training is to assist in the detection and prevention of fraud by increasing the overall level of awareness amongst all employees. In many cases, fraud and corruption are not identified early as a result of staff not having the ability to recognize the factors that can indicate fraud. This can also occur because they are unsure how to report their suspicions or they could have concerns about the integrity of the reporting system or the investigation process. An organization’s investment in anti-fraud training will show employees that they are serious about fraud prevention and that it is important to communicate concerns.

All staff benefit from fraud awareness training. The more staff that are educated, the more eyes and ears you have to protect the organization’s assets.

It is therefore important that every staff member (management and non-management) has a general awareness of fraud and corruption and how he or she should respond if this type of activity is detected or suspected.

For more information on Breakwater’s Anti-fraud Training services please go to our Anti-fraud Training information page or contact Shane Troyer, Incorporated Partner, at stroyer@breakwateradvisors.ca or 778 331 2234.