Poll Results: “What do you think is the most effective way to combat fraud”.

In a recent non-scientific poll, Baker Tilly Jordan asked the question ‘What do you think is the most effective way to combat fraud’.

The choices included:

1) strengthen oversight,

2) fraud detection systems,

3) increase public awareness, and

4) encouraging whistleblowers.

The result was:

Combating fraud effectively requires a multi-faceted approach that includes technological, procedural, and educational measures. Those include:

Strengthening oversight through establishing robust internal controls that includes segregation of duties to ensure no single individual has control over all aspects of a financial transaction, reducing the risk of insider fraud. In addition, regular audits to detect and address discrepancies or irregularities.

Fraud detection systems to detect unusual patterns and flag potentially fraudulent activities in real-time. Ensure security through a Multi-Factor Authentication for accessing sensitive information or completing transactions and encrypting sensitive data both at rest and in transit to prevent unauthorized access. Furthermore, use data analytics to predict and prevent potential fraud before it occurs and analyze customer and employee behavior to identify anomalies that could indicate fraud.

Increase public awareness through educating the public about common fraud schemes and how to avoid them.

Encourage whistleblowers and promote a culture of integrity through establishing clear and anonymous reporting mechanisms for suspected fraud. Foster a corporate culture that emphasizes ethical behavior and integrity and ensures that leadership models the behavior expected of all employees, promoting a transparent and honest work environment.

In addition to the above, there are further measures that should be implemented to successfully combat fraud, which includes enhancing customer verification processes and knowing your customers to verify the identity of customers during onboarding and throughout the customer relationship. In addition, ensure compliance with relevant laws and regulations regarding fraud prevention and data protection and take swift legal action against perpetrators of fraud to deter future incidents.

Want to know more about how to combat fraud, speak to Baker Tilly for an initial free one?hour?session.