Measures to fight fraud: The Implementation

Measures to fight fraud. What are measures every organisation must implement to prevent fraud? Reporting fraud is crucial for any organisation to do as it aids in not only safeguarding your organisation from the outside but also in protecting the economy. When the event of fraud happens on a large scale, it can set back a nation’s economy substantially. Consumers which consist of the public as well as any trade suppliers will not purchase goods or services if there is any possibility of them developing into victims – an issue that has plagued third-world countries in recent years but is not exclusive to just them.

Reporting fraud protects your organisations internal and external team, and organisational leaders must come to realise that they have a responsibility to look out for their personnel whilst also promoting a workplace that encourages the employees to look out for one another. It is therefore vital that all suspicious activity must be brought to light. When offenders are allowed to operate without restraint, the rate of fraudulent conduct tends to spread with many victims clueless to the notion that somebody is taking from them.

The question of mandating the reporting of fraud has always been of prevalence and the ACFE released a report in which it was found that “the main reasons given in support of mandatory fraud reporting included: the prevalence and damaging nature of fraud; the opportunity to gain a better overall understanding of fraud; the need to escalate tackling fraud as an item on the government’s agenda; the value in creating more and better intelligence for policing; and encouraging organisations to take more responsibility for managing fraud.”

Regardless of where you stand on the mandating of reporting fraud, it is important to know what you can do as an organisation to safeguard yourself from the ramifications. To celebrate this year International Fraud Awareness Week we leave you with food for thought on what preventive measures you should implement to avert fraud.

The Fraud Triangle theory

Renowned criminologist Donald R Cressey developed a theory that implicated three aspects that trigger fraud, these include:

  • Opportunity
  • Rationalisation
  • Pressure

Trusted persons become trust violators when they conceive of themselves as having a financial problem that is non-shareable, are aware this problem can be secretly resolved by violation of the position of financial trust, and are able to apply to their own conduct in that situation verbalizations which enable them to adjust their conceptions of themselves as trusted persons with their conceptions of themselves as users of the entrusted funds or property (Donald R. Cressey, Other People’s Money (Montclair: Patterson Smith, 1973) p. 30

When offenders are allowed to commit fraud, they will do so promptly. An absence of core regulations or reporting structure/oversight increases the chances of fraud as the offenders are aware that they are unlikely to face any repercussions.

The offender then goes on to rationalise the repeated dishonesty, which, feasibly over a few years, rises slowly and becomes a prerogative as they feel entitled to the easily obtained profits they received from the deceptive act.

They may feel that the gains are easier to obtain rather than confronting the vast pressure, be it corporate reasons such as meeting organisation targets or personal pressures, such as addiction or financial crises which is what prompts them to carry out their fraudulent conducts over a prolonged time. Consequently, it is incredibly important to implement preventative measures to safeguard your organisation from fraud.

What preventative measures should I implement to fight fraud?

At CRI® Group, we offer a wide array of services catered to several industries to help implement anti-fraud procedures. Fraud can be found in many aspects of an organisational core and peripheral structure, so it is, therefore, important to tailor it to each element.

To detect employee fraud, for example, it is advised that you pursue the proficiency of a skilled employee fraud accountant as early as possible. Employee fraud accountant aids in inspecting an employee’s professional conduct. This can be done by obtaining and by reviewing your organisation’s bank statements and financial documents and advising you whether an employee is committing fraud and to what extent; the report will also give you the evidence you need to take the necessary action against your employee and act as a preventive to others. However, this is vastly different from conducting a pre-employment screening check.

What are the makes of an ideal candidate? The experience, qualifications, and academic accreditation, right? But how do you verify everything that they have presented to you? Employee background checks and necessary screenings are crucial to avoid a bad hire that can impact HR, your business, or even your brand –the financing of sufficient screening can save you time, money, and despair.

Know your workforce

Employee Background Checks investigate a potential candidate’s character in and out of their professional lives. These checks as inclusive of a candidate’s qualifications (documents provided), work history (with a reference check), right to work in the country and even a quick social media presence scan. Conducting employee background checks can diminish the probability of hiring a candidate who could cause irreversible damage to your organisation. Organisations can spend years and a substantial amount of money to brand their products and services; one bad hire is all it takes to cause a loss of capital and reputation to the extent that may cause an organisation to break.

EmploySmart™ is CRI®’s exclusive employee background checks service providing a comprehensive check of all the necessary data required for pre-employment. EmploySmart™ is a robust pre-employment background screening service certified for BS7858 and is used in a bid to avert inattentive hiring charges. CRI® helps organisations create a safe work environment for all and our EmploySmart™ system can be customised into special screening packages to meet the requirements of each specific position within your organisation. Why not check out our brochure?

Implement a third-party risk management process

Apart from the internal aspects of fraud, it is equally as important to remember that fraud can happen with any external connections your organisation may have including suppliers, consumers, investors and so on. It is vital to ensure that you are conducting third-party risk management to avoid such an instance. CRI® Group’s private but professionally developed 3PRM™ facilities aid organisations in proactively abating risks from third-party associations, safeguarding your organisation from legal responsibility, brand damage, and any other impairment to the organisation. Regardless of where your organisation is in terms of the stages of development, our 3PRM™ solution is the perfect solution for eradicating exterior risks associated with your progress. The 3PRM™ restructures the third-party risk management process through scalability and efficiencies – from third-party risk identification to assessment. Check out more on third-party risk management, download the brochure.

Fraud can be an incredibly formidable task and with more legislation looking to be implemented regarding reporting fraud, you must keep yourself aware of it. 

Why not contact one of our specialists for a free 30-minute consultation? Our experts range from different fields and industries hence allowing us to provide your organisation with a truly bespoke service. Prevent fraud in your workplace today – it all starts with you.



About the International Fraud Awareness Week

CRI® Group is once again a proud supporter of 2021’s International Fraud Awareness Week. Taking place throughout the week of November 14th to November 20th of 2021, International Fraud Awareness Week is a global effort is a move to diminish the influence of fraud by advocating for anti-fraud awareness and education. According to the 2021 ACFE Report to the Nations, organisations continue to lose about 5% of revenue to fraud each year and currently, there are more than 3.3 billion people in the global workforce with all of them having access to or control over some portion of their employer’s cash or assets – an amount which contributes to such a loss.

Corresponding to the most recent ACFE report, other fraud trends which have remained constant throughout the last few years include:

  • Asset misappropriation is the most identified scheme
  • Tips are the greatest process of exposure
  • The lengthier that fraud goes unbridled, the greater the median loss

Zafar Anjum, founder, and CEO of CRI® Group said that International Fraud Awareness Week (called Fraud Week, for short) is a crucial endeavour drawing attention to fraud and aiding to support better education towards communities about the liabilities that accompany fraud. “CRI® Group has been a proud supporter of Fraud Week for past years”, Anjum said. “It’s an important time to urge organisations of all shapes and sizes to conduct proper due diligence and minimise risk. Only by addressing fraud and corruption proactively can we make progress in preventing and detecting it”.

For CRI® Group, though, assisting organisations with the deterrence and detection of fraud is a year-round responsibility which is why Fraud Week is a wonderful occasion to acknowledge CRI® Group’s contemporary exertions in the bout alongside fraud; it is also a wonderful time to look ahead on CRI® Group’s activities which are all nearing their time of action.


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