To Combat Fraud
As a business, you wouldn’t go without important liability or other insurance because you know that puts you at enormous financial risk if an accident occurs. Companies don’t put employees on a factory floor or sit workers before computers without offering some sort of training on machinery or software. You work to protect your business and productivity in many ways, and anti-fraud training should be one of them.
Growing Number of Fraud Cases
In 2013, a growing number of companies and government agencies across the country reported data breaches. A recent survey from the Association of Certified Fraud Examiners indicates that one in three U.S. small businesses is a victim of fraud. Fraud can include:
- Theft by your employees
- Credit card fraud
- The cashing or issuing of fraudulent checks
- False payment requests
- Activity that promotes data breaches with an eye toward stealing financial or other information
Anti-Fraud Training Best Practices
Educating employees to identify and combat fraud is one of the best ways to keep issues out of your business. Before you begin training, make sure you have the policies in place for defining and reporting fraud. Your anti-fraud training should include:
- Clear examples of fraud and how employees should react to each situation
- An explanation of the negative impact fraud can have to the organization and each individual
- Processes for internal audits at the employee and organizational level
- An all-shred policy to keep sensitive documents safe and secure
- A list of actual consequences, up to and including termination, should employees be involved with fraud.
Train employees to report suspicious activity immediately to a supervisor or a fraud hotline. By providing anonymous reporting resources and a no-retaliation policy, companies can encourage employees to feel comfortable reporting potentially fraudulent activity to leadership.
Lastly, anti-fraud training should occur on an annual basis. Make updates to training to cover issues that arise throughout the year as well as changes to regulations and company policies.
How have you implemented anti-fraud training at your business?