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Fraud Prevention

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Fraud Prevention

In today's world of corporate corruption and global fraud, it is no longer sufficient to merely react to fraud within your company as and when it happens. To survive in today's business world, it is essential to take a proactive approach to fraud management and deter it from even happening. i.e. it is much more effective and efficient to prevent funds and assets disappearing or being misappropriated, than attempting to recover the funds and/or assets once they have left the corporation. Therefore creating an effective framework to both detect and combat fraud, although a difficult task it is essential for the corporation. Further the on-going task of maintaining corporate awareness, gaining trust among employees, defining fraud within an organisation, preventing and detecting fraud as and when it arises is an even more difficult task. Development of an Anti-Fraud Culture and Fraud Awareness Program throughout the corporation from the very top to the bottom is an essential requirement.

A major reason why people commit fraud is because they are allowed to do so. There are a wide range of threats facing businesses. The threat of fraud can come from inside or outside the organisation, but the likelihood that a fraud will be committed will be greatly decreased if the potential fraudster believes that the rewards will be modest, and that they will be detected or that the potential punishment will be unacceptably high. The main way of achieving this must be to establish a comprehensive system of control which increases the likelihood of detection. It has been said that there are three requirements which need to be met to reduce the risk of fraud. Good Business Ethics, Good People and Good Secure Systems.

An Anti-Fraud Corporate Policy should be designed and implemented to ensure that fraud prevention, detection, investigation and resolution activities are fully appropriately managed and observed at all times. Such Anti-Fraud Corporate Policy should be in accordance with global and local regulatory and legal requirements and thereby mitigate all associated legal, regulatory and reputational risks. In addition the corporate policy should be supplemented by a fully supported corporate wide Anti-Fraud Culture.