CFEs and management should recruit and train those who can fight fraud most effectively as employees.
Since you're reading this issue of The White Paper, chances are you have at least a basic understanding of fraud and why it's important to prevent, deter, detect, and pursue. However, often the people that are in the best positions to fight fraud, those on the front lines of procurement, audit, payroll and accounting â€“ to name a few â€“ have little if any training in the basics, the key indicators of fraud, and the steps to take when they suspect it. Most employees want to help fight fraud and help root out wrongdoing but they don't have the right tools to do the job.
Contained here is a blueprint of a fraud awareness-training program for non-fraud investigators for increasing overall knowledge of fraud and encouraging employee reporting of potential wrongdoing to the CFE. This program can be adapted for use in public or private entities, colossal multi-national corporations, or small non-profits.
To increase fraud prevention, deterrence, and detection in any organization we must make anti-fraud foot soldiers out of as many employees as possible. More information reported to the CFE concerning indications of possible fraud can only increase the amount of fraud that will actually be uncovered.
The crucial first step in this process is to meet with management, particularly procurement managers, to introduce the initiative, obtain their support, and provide them an overview of the training you'll provide. This accomplishes several important tasks because management can help you:
1) focus the details of your message (the specific fraud risks that have been identified by management; the fraud history of the organization, if any; and the types of fraud with which they are most concerned);
2) assist in identifying appropriate audiences and training opportunities for this education campaign (i.e., new employee training, mid-level procurement courses, annual training days); and
3) reaffirm their support and the corporate ethos that encourages proactively preventing and detecting fraud that affects the organization versus merely â€œwishing and hoping it doesn't happen to us.â€
Another great advantage to including management in the beginning stages of this process is that when you're conducting fraud awareness briefings to the line employees, you can emphasize that management has received the same training and they support the program. Employees are more apt to embrace their obligation to look for fraud when they know their management has already made this same commitment.