Corporate Whistle Blowing Fraud Awareness and Prevention
Employee awareness to prevent employee theft and fraud
The promotion of corporate whistle blowing by means of awareness and behavior change campaigns is vital for fraud and corruption prevention.
According to Wikipedia a whistle blower may be defined as a person who reports concealed misconduct on the part of an organization or body of people, usually from within that same organization.
This misconduct of the perpetrator may be classified in many ways; for example, a violation of a law, rule, regulation and/or a direct threat to public interest, such as fraud, health/safety violations and corruption.
Whistle blowers may make their allegations
- Internally, for example, to other people within the accused organization or
- Externally, to law enforcement agencies, to the media or to groups concerned with the issues.
As you can imagine corporate whistle blowing can be sensitive as it can cause complications, especially if the whistle blower's facts are not correct. Some companies choose not to prosecute in some cases where the case may draw negative attention and publicity to the company.
There are many organizations that specialize in helping companies deal with whistle blowing. We believe that with the help of a fraud and corruption awareness campaign and incorporating a zero fraud tolerance into the company's mission statement - and explaining the purpose of the mission statement - many people will think twice about taking a chance and committing fraud or doing something illegal.
Risk assessment to determine high risk areas
An example of risk assessment is doing an audit on high risk areas such as divisions that handle money, or make payments.
Our campaigns are tailor made to the specific company's needs and are designed to highlight
- What constitutes fraud?
- How to avoid committing fraud or doing anything unlawful
- The consequences of fraud and
- How to report fraud - steps to blowing the whistle anonymously.
By making people aware and encouraging corporate whistle blowing the occurrence of fraud can decreased and employee behavior can be changed.
Most corrupt, illegal and immoral practices go undetected because employees fear the consequences of blowing the whistle through internal channels. They often do not feel that they can trust the person that they have to report the fraud to as they may be victimized. The also do not believe that they will be protected and that the information they provide will remain anonymous and confidential.
There has been an increase in the following types of fraud in the workplace:
- E-mail fraud
- Employee theft
- Identity theft
Fraud prevention and an increase in fraud detection are necessary for all companies especially financial services companies.
The Fraud Association of Certified Fraud examiners deal with all types of fraud.
Prevention is better than cure. Conduct a fraud awareness campaign and decrease the chance of fraud being committed.