Designing a Robust Fraud Prevention Program, Part Two


Entities worldwide must transform security departments into rigorous fraud prevention programs staffed with qualified fraud examiners.  

Failed corporations and tougher legislation are forcing entities throughout the world to transform weak, reactive security departments into robust, proactive fraud prevention programs with one goal: stop fraud before it happens.

Here I continue with the principles from the joint professional document, Fraud Prevention Checkup.

Creating Positive Environment  

Obviously, a poor working environment provides a motive and rationalization to commit fraud. Here's a quick health check: does management appear not to care about their employees? Does it have unreasonable expectations or financial targets? Is the organization autocratic or participative? Is there a lack of training or promotion opportunities? Does management say one thing but do another? Are senior executives treated differently than rank and file employees when it comes to discipline?

Hiring and Promoting Appropriate Employees  

Of course, it's important to minimize the possibility of hiring employees who lack appropriate values. The best indicator of future performance is past performance. Conduct background checks on new hires or promotions to positions of trust. Professional checks can uncover criminal convictions, credit history problems, questions about education and degrees received prior employment issues and integrity concerns.

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