Getting Employees To Join The Fight Against Fraud

OMA Connections Partner, MCM, posts this: “… The manufacturing sector is especially vulnerable to fraud schemes involving billing, corruption and noncash assets, such as theft of inventory and equipment. Research suggests that businesses that provide a convenient and confidential way for employees to report unethical behavior are more likely to unearth embezzlement and other wrongdoing sooner and suffer smaller losses than those without established “whistleblower” policies.”

And “… the Association of Certified Fraud Examiners (ACFE) has consistently found that tips are the most common method of detecting fraud by a significant margin. … the ACFE found that more than 42% of frauds were detected by tips. About half of these tips came from employees, and the rest were reported by vendors, customers and anonymous sources. The second most common method of detection was management review, which unearthed fraud in only 16% of the cases in the study.”