Unemployment
FRAUD FACTS
Issue 12 April 2011 INFORMATION FOR ORGANISATIONS
An introduction to fraud detection
Fraud detection should form part of an organisation’s overall anti-fraud strategy to identify and stop new or historical fraud at the earliest opportunity. Effective fraud detection saves money and protects businesses and their employees, shareholders and customers.
What is fraud detection?
Fraud detection is the identification of actual or potential fraud within an organisation. It relies upon the implementation of appropriate systems and processes to spot the early warning signs of fraud. Fraud detection usually includes a combination of the following techniques: • Proactive (eg. risk assessments) and reactive (eg. responding to reports of fraud). • Manual (eg. spot audits) and automated (eg. specialist data-mining software). It should form part of an organisation’s overall anti-fraud strategy covering the prevention, detection and investigation of fraud.
Key elements
The key elements of a robust fraud detection strategy include: • Ongoing risk assessments • Staff training and awareness • Fraud reporting mechanisms • Data-mining and analysis • Manual checks and balances • Systems, processes and controls review.
Risk assessments
All businesses are vulnerable to fraud. However, the fraud risk varies according to the nature and size of the business and the sector in which it operates. Build a profile of potential frauds that your organisation may be vulnerable to and identify where they might occur. Be aware of new and emerging fraud threats affecting your industry or sector and think about how these might be prevented or detected within your organisation.
Who is responsible?
Every employee has a responsibility for fraud detection: • Board: Setting the tone from the top, governance and fraud risk management. • Management: Implementing policies, controls and processes. • Employees: Keeping an eye out for the warning signs of fraud, and reporting concerns. In some
Issue 12 April 2011 INFORMATION FOR ORGANISATIONS
An introduction to fraud detection
Fraud detection should form part of an organisation’s overall anti-fraud strategy to identify and stop new or historical fraud at the earliest opportunity. Effective fraud detection saves money and protects businesses and their employees, shareholders and customers.
What is fraud detection?
Fraud detection is the identification of actual or potential fraud within an organisation. It relies upon the implementation of appropriate systems and processes to spot the early warning signs of fraud. Fraud detection usually includes a combination of the following techniques: • Proactive (eg. risk assessments) and reactive (eg. responding to reports of fraud). • Manual (eg. spot audits) and automated (eg. specialist data-mining software). It should form part of an organisation’s overall anti-fraud strategy covering the prevention, detection and investigation of fraud.
Key elements
The key elements of a robust fraud detection strategy include: • Ongoing risk assessments • Staff training and awareness • Fraud reporting mechanisms • Data-mining and analysis • Manual checks and balances • Systems, processes and controls review.
Risk assessments
All businesses are vulnerable to fraud. However, the fraud risk varies according to the nature and size of the business and the sector in which it operates. Build a profile of potential frauds that your organisation may be vulnerable to and identify where they might occur. Be aware of new and emerging fraud threats affecting your industry or sector and think about how these might be prevented or detected within your organisation.
Who is responsible?
Every employee has a responsibility for fraud detection: • Board: Setting the tone from the top, governance and fraud risk management. • Management: Implementing policies, controls and processes. • Employees: Keeping an eye out for the warning signs of fraud, and reporting concerns. In some