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5 Fraud Tips Every Business Leader Should Act On

Posted on November 11, 2016 at 7:40 PM
Organizations worldwide lose an estimated 5 percent of their annual revenues to fraud, according to the ACFE's 2016 Report to the Nations on Occupational Fraud and Abuse. A single instance of fraud can be devastating: the median loss per fraud case was $145,000, and more than a fifth of the cases involved losses of at least $1 million. The good news? There are some basic steps your organization can take immediately to lessen your vulnerability to fraud: 1. Be Proactive - Adopt a code of ethics for management and employees and evaluate your internal controls for effectiveness. 2. Establish Hiring Procedures - When hiring staff, conduct thorough background investigations. 3. Train Employees in Fraud Prevention - Do workers know the warning signs of fraud? 4. Implement a Fraud Hotline - Fraud is most likely to be detected by a tip. 5. Increase the Perception of Detection - Communicate regularly to staff about anti-fraud policies, ways to report suspicions of misconduct, and the potential consequences (including termination and prosecution) of fraudulent behavior. Implementing these tips could help prevent your organization from becoming a statistic. Take action today. **Article from FraudWeek.com**

Categories: Fraud Awareness