I believe awareness and education
is the key to defeating fraud within today’s organisations. If business owners
are better educated on how and why fraud
occurs then it will encourage them to seek out strategies to ensure their
business isn’t open to it happening to them. In my experience, i have seen people
commit fraudulent activity and i have seen the opportunities for people to
commit fraud in the workplace. It can be as simple as authentication and
passwords.
According to Grippo, it is apparent that many organisations rely
on their auditors to detect fraud, although it is actually the organisations responsibility
to detect it and auditors are only there to keep an eye out for fraudulent activity.
A survey by the Association of Certified
Fraud Examiners traced many frauds to a lack of good internal controls. The
same survey noted common behaviors of employees who perpetrate fraud. One of
the best ways to uncover fraud is to be alert for these red flags. Better than
uncovering fraud is to keep it from happening in the first place. You can
prevent fraud in your organizations in three key ways: 1. Maintain a positive,
open, ethical culture. 2. Evaluate & minimize risk. 3. Create an oversight
process. (Grippo, 2012)
Fraud costs the Australian economy at least
$8.5 billion per year, therefore it is extremely important for organisations to
understand how to prevent fraud. According to the KPMG 2010 Fraud Survey Key finidings, the value per fraud and the
cost of fraud is increasing, this means it is only going to get worse so
knowing how to prevent it using education and awareness is a must.
-
Grippo,
F. 2012, How to Prevent, Deter, and
Uncover Fraud, page 22-24, vol. 30, issue 1
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