A pro-active Fraud Prevention Strategy is key for every business in its battle against fraud. A Fraud Prevention Strategy has significant benefits for the entity, once it becomes effective. At minimum, the strategy must act as a deterrent, reduce opportunity, reduce internal and external pressures, align attitudes of employees and provide an avenue for communication and openness.
* A Fraud Prevention Strategy requires constant reassessment and revision.
* Your Fraud Prevention Strategy should always include a Fraud Prevention Policy.
* A Risk Assessment and Grading should highlight areas exposed to fraud.
* Comprehensive Staff Vetting will significantly reduce potential fraudsters.
In terms of the “10-80-10 principle”, 10% of every organisation’s workforce will never deceive them. 10% on the other hand, will continue to actively seek opportunities to defraud the company. The middle 80% are honest by inclination but could be tempted given the opportunity, especially if they can justify their actions and if they perceive the chances of discovery are slight.