Cape Town - More than 900 organisations globally are promoting anti-fraud awareness and prevention campaigns.
This is part of International Fraud Awareness Week which runs from November 3 - 9.
It is estimated that organisations lose 5% of their annual revenues to fraud, according to a report published last year by the US-based Association of Certified Fraud Examiners (ACFE).
The ACFE provides the following steps to reduce the impact of fraud:
1. Be proactive
Establish and maintain internal controls specifically designed to prevent and detect fraud. Adopt a code of ethics for management and employees. Set a tone at the top that the company will not tolerate any unethical behaviour.
2. Establish hiring procedures
Every company, regardless of size, can benefit from formal employment guidelines.
When hiring staff, conduct thorough background investigations. Check educational, credit and employment history, as well as references.
After hiring, incorporate evaluation of the employee's compliance with company ethics and anti-fraud programmes into regular performance reviews.
3. Train employees in fraud prevention
Once carefully-screened employees are on the job, they should be trained in fraud prevention.
Are employees aware of procedures for reporting suspicious activity by customers or co-workers? Do workers know the warning signs of fraud? Ensure that staff know at least some basic fraud prevention techniques.
4. Conduct regular audits
High risk areas, such as financial or inventory departments, are obvious targets for routine audits. Surprise audits of those and all parts of the business are crucial.
5. Call in an expert
For most firms, fraud examination is not a core business component. That's why, when fraud is suspected or discovered, it is imperative to enlist the anti-fraud expertise of a Certified Fraud Examiner (CFE).
The CFE credential is recognised by businesses and governments worldwide as the standard for fraud prevention and detection.
This is part of International Fraud Awareness Week which runs from November 3 - 9.
It is estimated that organisations lose 5% of their annual revenues to fraud, according to a report published last year by the US-based Association of Certified Fraud Examiners (ACFE).
The ACFE provides the following steps to reduce the impact of fraud:
1. Be proactive
Establish and maintain internal controls specifically designed to prevent and detect fraud. Adopt a code of ethics for management and employees. Set a tone at the top that the company will not tolerate any unethical behaviour.
2. Establish hiring procedures
Every company, regardless of size, can benefit from formal employment guidelines.
When hiring staff, conduct thorough background investigations. Check educational, credit and employment history, as well as references.
After hiring, incorporate evaluation of the employee's compliance with company ethics and anti-fraud programmes into regular performance reviews.
3. Train employees in fraud prevention
Once carefully-screened employees are on the job, they should be trained in fraud prevention.
Are employees aware of procedures for reporting suspicious activity by customers or co-workers? Do workers know the warning signs of fraud? Ensure that staff know at least some basic fraud prevention techniques.
4. Conduct regular audits
High risk areas, such as financial or inventory departments, are obvious targets for routine audits. Surprise audits of those and all parts of the business are crucial.
5. Call in an expert
For most firms, fraud examination is not a core business component. That's why, when fraud is suspected or discovered, it is imperative to enlist the anti-fraud expertise of a Certified Fraud Examiner (CFE).
The CFE credential is recognised by businesses and governments worldwide as the standard for fraud prevention and detection.