Are you doing nothing?
If your company is like most other companies, you don't have any dedicated anti-fraud solution in place.
You're reactive rather than proactive - if fraud happens in your company, you trust that somehow you'll pick it up. Unfortunately most of the time it goes completely undetected. And if you do manage to pick the fraud up, then most of the time it's too late - the damage is done and the loss is never recovered.
On top of that, you're probably breaking the law. In most countries, you are legally required to have a fraud-reporting mechanism in place.
Why don't your employees
want to report fraud?
Employees are reluctant to come forward to report fraud. They are uncomfortable with a difficult face-to-face conversation with an appropriate authority figure in the company (such as the CFO or Finance Director). Plus, they don’t know what the consequences will be. In many cases, whistle-blowers are victimized and their jobs are negatively affected.
There is also no incentive for employees to come forward beyond satisfying their moral principles.
What about tip-off hotlines?
Some companies run a telephone ‘hotline’ which enables employees to anonymously highlight instances of fraud that they are aware of. These hotlines are typically run by large auditing firms.
The main problem with these hotlines is that they are not truly anonymous, since the employee’s voice can be recognized (and all calls are recorded).
Also, the company can't follow up to obtain further information from the person reporting the fraud due to anonymity issues.
And finally, these hotlines are very expensive which means that only the largest companies can afford to use them.
FraudCracker has developed an online solution which solves all these problems, and effectively identifies and prevents fraud in your business.