5 Basic Fraud Steps Every Organization Should Take

By Lowers & Associates,

Almost every organization is vulnerable to occupational fraud and abuse, and the impact of fraud can be costly. The 2016 Report to the Nations by the Association of Certified Fraud Examiners (ACFE), indicates that the worldwide loss to fraud across all organizations is 5% of topline revenue. Based on reported cases of fraud, the median cost per case was $145,000, and some others were much more.

As part of the International Fraud Awareness Week for 2016, ACFE published 5 Fraud Tips, a one-page summary of steps an organization can take to reduce its vulnerability. Implementing these steps cannot guarantee your organization won’t suffer occupational fraud, but it will certainly improve the odds.

1. Be Proactive

Top management needs to put in place policies and procedures that set a tone from the top against fraud. This may include a code of ethics taught to every employee, with on-going follow up training that emphasizes the danger and unacceptability of fraud. Traditional financial controls should be in place and reviewed on a regular basis, possibly with an independent internal audit function. Fraud prevention will be enhanced through organizational structures like effective separation of duties.

2. Establish Hiring Procedures

The person you hire may be a future fraudster. The hiring process is an opportunity to look into the background of an applicant to look for factors that may indicate risk. Where it is legal, and following best practice guidelines strictly, employers can run a variety of background checks to get a fuller picture of an applicant’s character.

3. Train Employees in Fraud Prevention

Employee training can go beyond the code of ethics. Employees are on the frontline of fraud, working with others every day and working with the systems and controls that are potentially vulnerable to fraud. These employees need to be aware of the signs of fraud both in evidence (such as breeches of a control), and in the behavior of their colleagues. One of the most difficult factors of fraud to combat is the pressure employees may feel to look for ways to commit fraud.

4. Implement a Fraud Hotline

A straightforward way to improve fraud detection is a fair and anonymous hotline for reporting potential frauds. A tip has long been the most important source for fraud reporting, and the hotline can facilitate it.

5. Increase the Perception of Detection

Fraudsters’ number one concern is getting caught. An anti-fraud culture in which there is regular training, communication, and discussion about fraud makes it clear to the potential thief that he or she will be under surveillance. When fraud does occur, the organization has to act decisively to prosecute, sending the message that the crime will have consequences.

Taking these steps can reduce the risk of occupational fraud. In the long term, the improved channels of communication up and down the organization may also help establish a happier workplace, which is a further barrier to fraud.

 

  Category: Fraud Prevention
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[Slideshow] 18 Fraud Facts to Drive Your 2018 Fraud Prevention Plan

By Lowers & Associates,

Fraud Week comes at a perfect time each year, just before the start of a new year when many organizations take a structured look at their performance over the past months, and begin to prepare for the year ahead. When it comes time to review your fraud risk management and prevention plan, it pays to have some hard statistics in front of you.

Our latest slideshow features 18 facts straight from the ACFE’s bi-annual Report to the Nations on Occupational Fraud and Abuse. The report can help you understand and respond to the threat of organizational fraud in your company, and the facts presented can serve as benchmarks for your organization while helping to uncover areas you may have failed to address.

How will you use these facts to create a more effective fraud prevention plan for your company in 2018?

  Category: Fraud Awareness
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5 Ways to Combat Social Engineering Attacks in Your Organization [Infographic]

By Lowers & Associates,

Wikipedia defines social engineering, in the context of information security, as the “psychological manipulation of people into performing actions or divulging confidential information.” Our increasing reliance on vast networks of digital technology for information storage, research, controls, and transactions makes organizations highly vulnerable to social engineering fraud.

There is a strong urge to combat this risk with a technological fix like stronger encryption or better management controls. The problem is not a technical one because social engineering fraud is based on the exploitation of human interactions and human frailties.

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6 Components of a Strong Healthcare Security Presence

By Lowers & Associates,

A strong healthcare security program begins with a strong presence. This presence should be both seen and felt, cultivating a multi-dimensional experience of safety. Even in moments where security is subtle, like in the case of consistent uniforms, the elements of security presence can make all the difference in a patient’s experience.

Here are the key components to a strong presence: … Continue reading

4 Ways Healthcare Security is Changing with the Times

By Lowers & Associates,

No doubt, times are changing. The U.S. is in the midst of a historic presidential transition. Economic pressures and complexities continue to squeeze the purse strings of many businesses and workers. Technology evolves more quickly than we can adopt and adapt. Communication continues to speed up and diverge in myriad directions. Volatility and violence in our social fabric continues to create tension, leaving us on the edge of our seats curious about what is going to help.

One solution that is relevant across all aspects of our life today is security. Promoting ways to feel safe and secure helps everyone relax into whatever actions are needed to continue to move us in a productive direction. This applies to us as individuals, in our homes, in our businesses, cities, airports, and other dimensions of daily life. Security is an important element to promote productivity.
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  Category: Healthcare Security
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