The Consequences of Neglecting Background Screening

Neglecting Background Screening

Are you neglecting background screening? What consequences may affect your organisation when you ignore this process when hiring? What is it about Background Screening? Statistics have revealed to us that a substantial quantity of resumes that are presented to HR during the recruitment process comprised fabricated material; shortlisting is a rigorous assortment procedure intended to put your applicant on trial, but if you are interviewing an individual who has fabricated much of their resume, how can you make a good judge of character? Put, executing a pre-employment check is the best way to combat this issue.

Background screening is vital to organisations of all types and industries as it can assist in authenticating your employees’ record of accomplishment and help avoid a bad hire. Before COVID-19, it was found that an estimate of 85% of organisations testified to conducting background screening of some type. On the same note, a vast 92 per cent stated that they trust their employees with confidential data but without the assistance of a background screening measure. Find out other ways COVID has impacted the hiring process, or download our background screening brochure.

Below, CRI Group™ has compiled a list of 5 risks you are running into when failing to conduct a background screening check before employment.

1. Your prospective member of staff could be a felon

Hiring a candidate with a criminal record could taint your company’s reputation, generate a highly volatile atmosphere in your office, and harm other staff members. An employer has the right to investigate an applicants’ criminal past; however, the only way to genuinely acquire the data surrounding an applicant’s criminal past when they intend on masking the evidence is through a criminal background check. 

A professional background verification service is a must to communicate with the local authorities to acquire legitimate illegal data and make a well-informed decision for the benefit of your organisation.

2. The odds of employing an unqualified candidate devoid of background screening is 1 out of 6

1 out of every 6 candidates carry inflated or falsified documents to persuade you into offering them the position – and this can be accredited to the rise of credential mills and fake corporations; applicants commonly use counterfeit degrees and false employment records to get hired, and it takes more than just a phone call to find out the reality. 

Background service providers use various procedures to obtain legitimate data, including private trips to the university/corporations where applicants allege to have graduated from or worked. Applicants with falsified resumes are not simply deficient in both integrity and honesty – in most cases, they are also not competent enough to fit your job description. A straightforward background verification uncovers this deception and prevents you from hiring an unqualified candidate.

3. Endangering the welfare of other members of the task force

In correspondence to the Substance Abuse and Mental Health Administration (SAMHSA),9 % of approximately 22.4 million unlawful drug users are employed either full time or part-time. A substance abuser, aside from grappling with efficiency, will also inhibit the performance of their co-worker with their improper demeanour. 

Employees with a record of drug abuse and misconduct are also deemed to be exceedingly inconsistent and present themselves as a danger to their co-workers; workplace violence and delinquency can be attributed to disregarding employee drug tests and criminal checks – checks that avert such calamities making your office peaceful and an improved place to work.

4. Increased abrasion can also be attributed to improper background screening

Pre-employment screening underlines the notion of quality over quantity. It makes sure that you hire the right candidate from a mass of applicants who applied for the position as employees with unsatisfactory credentials habitually find their way into your organisation through fabricated evidence. Hiring model candidates with an admirable mindset and relevant qualifications can mitigate employee turnover and enhance the general outcome of your organisation. However, the good news is that they never last for long, owing to their shortage of output and failure to handle the work delegated to them.

5. A candidate’s social media presence and global database can help nail down an accurate judge of character

Social media platforms in conjunction with international databases, for instance, criminal watch lists, credit archives, and public litigation archives, can expose your candidates’ positive and negative characteristics that may escape you during the interview and selection process. Abandoning these checks will hinder you as an employer from seeing your candidate’s best or worst side when picking among leading applicants who contend for a critical position. Employers who operate social media checks on their candidates have found it simpler to identify their candidates better, as social media is where the candidates are more apt to demonstrate their temperament and talents. The process for operating social media and archive checks can be burdensome, but rest assured that pre-employment screening providers are devoted to passing thorough checks on social media platforms and hundreds of databases to assist employers worldwide make critical hiring judgments.

The Verdict?

Background screening has achieved immense recognition throughout the world over the previous few years as it should do – its impact and the modern setting assist in diminishing the pressures that jeopardise every employer’s aim to enhance their personnel and work environment. Verification should be a compulsory component of an organisation’s onboarding procedure to alleviate all the risks we have discussed thus far. Notwithstanding the apparent advantages that background screening presents, it likewise confirms that your organisation hires the most excellent contenders who would promise continual triumph.

CRI™ is certified by British Standard Institute BSI for the scope of BS 7858:2019 screening of individuals working in a secure environment, Code of practice and BS 102000:2018 Code of practice for the provision of investigative services. The BSI is the only BS 7858 accredited background screening services provider in the UAE and the Middle East. Find out more about the BS 7858:2019 or download our BS7858:2019 free playbook.

The more you invest in sourcing morally correct corporate conduct, the more you can expect to be rewarded with a catalytic action to grow and expand your organisation.

Let’s Talk!

Don’t leave hiring to chance. Take a proactive stance with the highest level of background screening as a part of your essential corporate strategy. Contact us today to learn more about our full range of services to help your organisation stay protected.

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Fraud Prevention Strategy: Build One in Five Simple Steps

Fraud Prevention Strategy: The 5 Simple Steps

A fraud prevention strategy is one of the key policies that can aid an organization in safeguarding itself against reprimands of the matter. One of the greatest encounters a fraud auditor can confront is the mission of persuading management that the peril of fraud exists across all aspects of corporate culture – regardless of whether it is from internal factors or external factors. Fraud cannot ever be eradicated from the corporation as collusion is adept in continually conquering routine organizational regulations.

What is the strategy?

The objective of a Fraud Prevention Strategy is to identify a high-level proposal on how an organization should implement its fraud prevention policy in the presence of its internal and external influences. The strategy forms the most important part of the fraud deterrence strategy; thus, the policy an organization chooses to implement must be straightforward and pragmatic.

Combating fraud requires a distinct and refreshing methodology that entails including all three facets of the fraud cycle:

• Fraud deterrence and prevention
• Fraud detection
• Fraud investigation

Preferably, with the fraud cycle in mind, every enterprise ought to put together a distinctly specified fraud prevention strategy that integrates the following:

• Determine the proper culture with the proposed policy: having protocols and policies in place for dealing with fraud will help you establish a good grounding for identifying it.
• Counteract and detect: To detect fraud, you need to have effective systems and processes in place covering all aspects of your business.
• Investigation of any occurrences in which fraud occurs.
• Review and monitor policies and occasions in which fraud has transpired regularly to ensure that fraud levels stay below the goal amount.
• Learn from previous occurrences and update training procedures.
• Risk management covers all types of risk, from corporate and social responsibility compliance to performance measurement. 

To learn more about third-party risk management, why not check out our 3PRM brochure.

What should be established in a fraud prevention strategy:

1. Whistleblowing policy

Whistleblowing is the act of exposing information about misconduct in the workplace and is a crucial element in any prevention strategy. When whistle-blower hotlines are implemented and sustained correctly, they can substantially decrease an organization’s exposure to fraud by permitting for prior detection and thus savings in the form of reduced fraud losses from the prior detection.

2. Identify the risks:

The risk of fraud is not solely based on an employee’s background but also a myriad of other factors. Most notably, it is important to be able to identify risks by nature of items (some examples include size and value, ease of resale and cash), nature of the control environment (including separation of duties, safeguards, complexity, turnover and related party transactions) and pressures ( i.e., level of dissatisfaction – if the workforce is unhappy with the company, they will be more inclined to engage in fraud, expectations and guarantees). Identifying these risks is the first step in figuring out how to counteract them, thus preventing fraud.

3. Implement effective controls:

When it comes to implementation, organizations need to ensure that they complete the action plan and then refer it to an appropriate person – in most instances. This is from HR and other figures in leadership to management of employees. It is then up to the subordinates to assist them with implementing the strategy, reviewing the strategy, or delegating it to the employees.

Most policies implement:

• Making employees aware of emergency procedures
• Making employees aware of the location of first aid stations
• Educating employees on the location and obvious danger and workplace hazards
• Examine health and safety workplace responsibilities; wear the necessary protective clothing or equipment, participate and have input to management report incidents or mishaps as considered essential by management.

4. Increase awareness of the risks:

It must not be presumed that staff members have an innate perception of the risks of fraud or that they have any understanding of the scope of risks that encircle them. This means that it is incredibly important to stimulate a risk-conscious culture within an organization.

Some examples of methods to increase such awareness include:

• Performing risk audits and engaging as many individuals as possible in the organization in the risk auditing procedure
• Benchmarking – studying “best practices” from other organizations that have executed risk management.
• Sending organization personnel to attend industry seminars on fraud prevention as well as risk management

5. Plan for the worst:

It might sound pessimistic, but it is always best to prepare yourself and your employees for the worst-case scenario. Unfortunately, as hard as we try to minimize fraud, it cannot, be fully eradicated. If it appears too good to be true, it most likely is. It is good practice to meticulously probe all agreements, prospects, transactions, data and documents.

Want to know more about recruiting the right people for your organization? Visit our page on Background Screening services or view our EmploySmart brochure.

Crucial components that a proper fraud prevention strategy accomplishes:

It is easy to infer that fraud can leak into all aspects of corporate culture and can destroy an organization from within. Despite this issue, several organizations opt not to implement a fraud prevention strategy – it is primarily implied that this is ascribed to the absence of knowledge circulating on the benefits of such a strategy. However, the rewards reaped from this type of policy is beneficial to corporations eventually and can reap the rewards such as:

• Lower consequential loss pertaining to fraud
• Lesser/no legal and investigative costs relating to fraud
• Lesser/no regulatory fines paid in the occurrence of fraud
• Better time management can be used to enrich employees’ knowledge and experience at the organization.
• Reduced insurance premiums
• Lower turnover of key staff and customers
• The lessened cost of/capability to increase new finance

Overall, the process of preventing fraud can be an extensive one, but one whose benefits outweigh the onerous course. Protect your organization from liability, business interruption and brand damage by partnering with the CRI® Group. Our 3PRM solution address various specific areas, including:

• Third-Party Integrity Due Diligence & Screening: ensures global compliance, provides adequate monitoring & protection against potential litigation;
• 3PRM Enhanced Background Checks: uncovers derogatory information within the public & private record resources through risk-based background checks, including investigative research into suppliers & individuals, ultimate-beneficial owners;
• ISO 37001 Anti-Bribery Management System: CRI® Group’s independent and accredited Certification Body can examine your Anti-Bribery & Anti-Corruption procedures & issue an accredited Certification; and
• ISO 37301 Compliance Management System: CRI® Group’s independent certification body helps companies worldwide to increase & measure their efforts against regulatory compliance risks.

If you still have any questions surrounding fraud prevention, why not contact CRI®? Our experts have years of experience and have been trained to provide your business with bespoke advice that fits your organizations’ needs.

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Don’t hesitate to prevent fraud in your workplace today.

About us…

Based in London, CRI Group™ works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk Management, Employee Background Screening, Business Intelligence, Due Diligence, Compliance Solutions and other professional Investigative Research solutions provider. We have the largest proprietary network of background screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are, we have the network needed to provide you with all you need, wherever you happen to be. CRI Group™ also holds BS102000:2013 and BS7858:2019 Certifications is an HRO certified provider and partner with Oracle.

In 2016, CRI Group™ launched the Anti-Bribery Anti-Corruption (ABAC™) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management Systems, ISO 37301 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification. ABAC™ operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. As a result, CRI Group’s global team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organizations. Contact ABAC™ for more on ISO Certification and training.

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How to Identify and Prevent Employee Fraud?

In 2017 the major European ABB conglomerate admitted that an employee took advantage of serious management failings to disappear with $103 million of the firm’s cash. According to CNN business, ABB CEO Ulrich Spiesshofer and Chief Financial Officer Eric Elzvik admitted that the organizations managers had failed to maintain sufficient segregation of duties in the treasury unit of its subsidiary in South Korea and did not provide enough oversight of local treasury activities.

To top it all off, ABB also failed to keep the signature seals of the South Korean unit secure which as a result, has lead the company became “bound to unauthorized financial contracts, resulting in undetected financial obligations.” 

Organizations rely on the honesty and integrity of their employees, however employee fraud does unfortunately cost companies vast sums of money. Employee fraud is a reality across all sectors – no matter how credible a job applicant is and how stringent your hiring process is – your business is at risk.

Tips on Identifying and Preventing Employee Fraud

When you trust your employees, it is difficult to think the worst of them, even when there are red flags – circumstances or patterns that are out of the ordinary – alerting you to the contrary. If you have suspicions of employee fraud, it is recommended to hire a forensic accountant to help you detect fraud, understand your circumstances, and put together evidence to target and confront the employee without tipping them off.

The good news is that you can plan and train your team to prevent this from taking place; the best thing you can do for your business is to learn how to recognise the warning signs of employee fraud and have robust procedures in place to minimise the risks and opportunities for fraud. Employee fraud covers a wide range of fraudulent activities in the workplace and can vary in seriousness including embezzlement.

Embezzlement involves an employee who transfers company funds into their bank account. One example of an act of embezzlement is deliberately writing cheques in the employees’ name or diverting company assets without authorisation, e.g. customers unknowingly pay into an employee-controlled bank account, not the business’. This is serious fraudulent behaviour, but employees usually get away with it without raising any suspicion by creating non-existent suppliers and fake employees or using counterfeit credit notes to hide/disguise misappropriated monies.

An easy way to spot this type of financial fraud is to scour through the bank statements and financial records of your organisation and check for irregular activities or patterns of unusual and unauthorised transactions.

Another common sign of embezzlement is when either an employee or a manager/director begins to enjoy a lavish lifestyle that is obviously beyond their means, e.g. holidays, cars, clothes/jewellery. In the case that you suspect an employee or director might be embezzling funds from within your company, it is essential to be discreet in your employee fraud investigation to prevent the employee from covering their tracks and disposing of substantial evidence.

Other Common Types of Employee Fraud

• Commission fraud – inflating sales figures to gain a more significant commission than deserved.
• Petty fraud – for example, embellishing an expense claim or taking office supplies.
• Money laundering – hiding the origin of illegally obtained money and washing it through your business.
• Insider Trading – making a profit by using valuable information that is unavailable to the public to their advantage, for example, confidential information that could impact the prices of shares, securities, goods/commodities.
• Manipulation of accounts – false information on sales, purchases or stock can be used to perpetrate fraud for personal financial gain, e.g. overstated trading profits to receive cash/share bonuses, or get a promotion, creating false trading accounts or stock/fixed asset write-offs to obtain goods.

What Can You Do (as an employer) to Minimize Employee Fraud?

The most effective way to minimize employee fraud as an employer is to implement robust management procedures and employee background screening; the implementation of these preventative measures will ensure staff are adequately investigated and monitored and consider the possibilities for collusion between employees – including a conflict of interest. Paying attention to only the procedures within your accounts department is not sufficient. The same procedures can help you across your operations, including sales and procurement.

Minimize the chances of employee fraud with the following procedures:

• Separation of employee responsibilities such as placing orders, recording invoices and collecting debts.
• Requiring purchase or payment authorization by more than one person.
• Compare actual to budgeted expenditure for unexpected patterns.
• Examine bank reconciliations thoroughly.
• Scrutinize cancelled cheques and cheques made out to employees or unusual vendors.
• Review supplier invoices for significant amounts, pricing or volumes.
• Verify credit notes and write-offs with receiving records.
• Install and monitor CCTV to deter theft of stock or equipment.

Fraud Triangle

An American criminologist, Donald R Cressey, devised a theory that involved three aspects that trigger fraud. Understanding these triggers will help you prevent fraud:

• Opportunity – the lack of internal controls or reporting structure/oversight increase the chance of fraud.
• Rationalization – the fraudster will rationalize the continued deception, which increases slowly, perhaps over a few years, becoming an entitlement, i.e. I deserve this. This offers the chance to stop some employee fraud early if robust detection procedures are in place.
• Pressure – overwhelming pressure, be it business factors such as company targets to meet or personal pressures, such as gambling or financial problems.

Implement Pre-employment and Post-employment Employee Screening Now!

Preventing financial loss is crucial for your business’s survival and expansion, which is why it’s essential to know and understand its obvious signs. Use the list above as a guide to protecting your organization.

To detect employee fraud professionally and thoroughly, it is recommended you seek the expertise of a skilled employee fraud accountant as early as possible. They can help you investigate your employees by reviewing your bank statements and financial documents and advise you whether an employee is committing fraud and to what extent. A forensic accountant’s report will also give you the evidence you need to take the necessary action against your employee and act as a deterrent to others.

For a Free and Confidential Chat to Discuss How We Can Help Your Business, contact us. 

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Risks of Cybercrime and Social Media: NEW PLAYBOOK

The risks of cybercrime claims many victims over many sectors. The PwC Global Economic Crime Survey 2020 found that a company falls victim to six frauds on average. The most common types are customer fraud, asset misappropriation as well as cybercrime. It also proved a roughly even split between frauds committed by internal and external perpetrators, at almost 40% each – with the rest being mostly collusion between the two. Few can deny the enormous technological advancements that are constantly taking place in the modern world. The internet, the computer, and other technological advancements have dramatically changed what it means to socialise, ‘chat’, and even read a book. Both the disadvantages and advantages of such developments are clear, and as technology gains pace, so have the unlawful activities of those who seek to take advantages of such developments.

According to a 2020 cybercrime report from Europol, COVID-19 sparked upward trend in cybercrime. In fact, since the beginning of the pandemic, the FBI has seen a fourfold increase in cybersecurity complaints, whereas the global losses from cybercrime exceeded $1 trillion in 2020. 

In other words, as technology evolves, the risks of cybercrime have become complex. The sense that one is safe from crime in the privacy of one’s own home has been lost. In fact, according to World Economic Forum’s “Global Risks Report 2020” the chances of catching and prosecuting a cybercriminal are almost nil (0.05%).

Take the First Steps Towards Developing Measures Against the Risks of Cybercrime! 

This playbook critically examines the growth of cybercrime, evaluating the risks it poses in terms of the different forms of cybercrime that exist and the regulations that seek to detect, prevent and punish them.

The extension of an old legislation to include cybercrime is not entirely effective – especially not for crimes committed within the realm of social media and social networking. Therefore the need to develop an ‘anti-cybercrime culture emerges. It has to be implemented on an international scale that safeguards these crimes – the promotion of careful use would therefore be facilitated to hinder such crimes before they can materialise. Our playbook includes:

• What is cybercrime and why is it important?
• Top corporate cybersecurity risks and 10 types of high-tech crimes
• How cybercrime impacts business and your company’s growth
• Cybercrime and regulations in place
• And how your response as a business matters – how to can you protect your business from cybercrime including advice and tips on how to telework safely

Download the full playbook today and learn step-by-step things your company can do to be better protected from cybercrime. Robust cyber-security, data protection, anti-fraud and risk management all come together to mitigate the dangers posed by hackers, phishers and other cybercriminals.

DOWNLOAD PLAYBOOK

With the playbook in your hands, you’ll learn about the most common cyber attacks. This includes viruses, phishing attacks and website hacks. You’ll also gain a better understanding of the consequences of different types of cybercrime.

To sum it up, the playbook provides best-practices and ways that companies are lessening their risk without spending prohibitive resources to do so. Above all, the right expert advice means that any company can be on the right track to protecting their customers, their assets, and their employees from the risks of cybercrime.

Who is CRI Group™ ?

Based in London, CRI Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk Management, Employee Background Screening, Business Intelligence, Due Diligence, Compliance Solutions and other professional Investigative Research solutions provider. We have the largest proprietary network of background screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are, we have the network needed to provide you with all you need, wherever you happen to be. CRI Group also holds B.S. 102000:2013 and B.S. 7858:2012 Certifications, is an HRO certified provider and partner with Oracle.

In 2016, CRI Group launched the Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management Systems, ISO 37301 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification. ABAC™ operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. As a result, CRI Group’s global team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organisations. Contact ABAC™ for more on ISO Certification and training.

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Debugging fears that paralyse fraud prevention

Debug fears for fraud prevention

Even though companies understand the fraud risk factor – nearly 77 per cent of HR professionals accept that there is a risk that employees can initiate fraudulent activity because of the work-from-home arrangement during the pandemic – more often than not, companies do not take action to implement robust fraud prevention processes in place until the organisation is exposed to fraud or appear in the news due to an investigation, incident, or external and (or) internal violation. Based on the article by ACFE, we aim to answer why companies wouldn’t adopt fraud prevention and detection measures proactively. 

The answer is fear. It prevents business leaders from being proactive about fighting fraud. Business analytical tools and systems enable companies to identify red flags quickly, but they do not work as fraud prevention tools. 67 per cent of CRI® Group’s background screening survey respondents said they encountered one type of fraud – employee fraud – in their career. It’s alarming to imagine how others have encountered many other types of fraud. And still, companies pay lip service to efforts to fight fraud. So how the fear factor plays into the decision to fight fraud?

Fear of associated expenses

A fraud prevention tool is a cost you don’t always recognise an immediate return. Consider it like health or car insurance – when it comes to identifying and preventing risk and potential fraud, returns can be harder to quantify.

There are some concerns about spending money on a system that might or might not identify fraud. And if the system does identify fraudulent activity, companies are now obligated to spend more for the additional investigation and possible litigation. It might not be a significant expense for some large organisations, but the budget is better reinvested toward a company’s bottom line.

When trying to save their expenses, organisations forget that expense fraud is one of the most common forms of occupational fraud: employees fudging on their expense accounts. Earlier this year, Lookers (A London-listed company) warned investors they might be unable to buy and sell its shares from the beginning of July because of potential fraud on its books – confirming a £19m charge to correct books after fraud inquiry. Whether through fictitious charges, fake receipts or invoices, or other improper use of expense funds, an expense account is sometimes seen as a low-risk, high-reward area for fraud. It shouldn’t be. Follow these five tips for preventing and detecting expensive fraud.

Fear of technology

Based on ACFE, “companies are concerned that implementing new software technology might increase their exposure to fraud via data breaches. They’re also concerned that technology will replace internal auditors. While data encryption and similar tools can combat the risk of data breaches, addressing personnel concerns are trickier.” Technology is meant to assist but not to replace people. It helps identify the red flags, but human input and investigation are required to determine if fraud is occurring and check the facts. 

Appointing a fraud investigator is a good idea in this case. Fraud investigators are the front line of establishing the facts of suspected fraud or other unethical business behaviour. A fraud investigator’s skillset and wide knowledge of fraud laws, evidence gathering, and interviewing make them the go-to expert for investigating insurance fraud, financial fraud, procurement fraud, asset recovery, cyber fraud, healthcare fraud, retail fraud, etc. In this article about fraud investigators’ role, we explore their key functions, responsibilities and knowledge, and how their skillset helps organisations.

Fear of reputation loss

“Companies might fear their reputations will take a hit if they uncover ongoing fraud schemes. Social media has become a prevalent form of information sharing, so all it takes is the hint of a rumour, and the damage is done. Employees might post the information — or alleged information — that makes it appear as though a company is attempting to hide something”, based on ACFE. This comes as the company’s advantage to be open with employees to fight fraud. Employees are less likely to whistleblow in public when they are safe and have internal options to report fraud and discrepancies.

The key ways of managing the company’s reputation are being transparent, protecting data, and conducting due diligence. It may sometimes feel like your company’s reputation is out of your control. However, you can take steps to help manage your reputation and help steer the conversation. It becomes more difficult when you wait and try to undo later the damage that has already been done. That’s why being proactive in maintaining a positive reputation is the best strategy.

Fighting fraud on the front line is key

Companies must realise that the benefits of fighting fraud far outweigh the fears. Engagement in an early fraud education process acts as a buffer, leading to fewer fraudulent losses. Procurement and payables professionals must implement efficient processes that address red flags and track — early and upfront — non-adherence to mandates. Below is a quick overview of best practices for engaging analytic tools and front-line staff to identify and prevent fraud.

• Tone at the Top: Of course, top-level management must be committed to addressing fraud prevention. However, it’s just as important for middle managers to adopt a zero-tolerance policy toward fraud. A lack of integrity can be contagious. If workers see their supervisors’ rubberstamping processes, it gives them little incentive to raise concerns when they find inconsistencies.
• Segregation of duties: No one should be responsible for an entire accounting function. The individual who sets up a vendor or client shouldn’t be the same person who approves invoice payments. It’s vital to have multiple eyes on the process, especially in smaller organisations where segregation of accounting duties might be limited or non-existent.
• Create a fraud-fighting culture: The very perception of detection helps prevent fraud. A fraud-prevention overview should be part of new employee orientation. Companies also should sign off on internal codes of ethics that outline the steps and procedures employees can take if they suspect fraud. Tips are consistently, and by far, the most common detection method. According to the Report to the Nations, tips detected more than 40 per cent of all cases. Publicise a hotline number internally and externally for your vendors — one of your employees might even be seeking to collude with a client!
• Training and process audit: Perform anti-fraud training for employees annually, at a minimum. Increase your anti-fraud training if you have a substantial number of new employees coming on board. Annual fraud awareness and detection training sends a clear message to employees about your organisation’s high standards and could deter fraudulent activity. Vet suppliers and clients. If you want to avert various fraudulent schemes, you must understand the red flags to look for when onboarding a supplier or client. Vendor vetting in real-time can mitigate upfront risks and dictate those actions required to prevent fraud from slipping undetected through the system. Vendor portals prove invaluable for vetting suppliers using automated data validation.
• Take action: There’s no reason to identify or perform analysis if you’re unwilling to take action. Fraud prevention software can help you do more than detect fraud — it can highlight poor processes that might expose you to fraud. For example, you might have a legitimate vendor or client, but software can raise a red flag because of gaps in your setup process. Analyse results, make changes, monitor and constantly learn from your processes.

Don’t let fear take control

We must help diminish the fears that impede the fight against fraud. At CRI® Group, we know that we can effectively and together use the needed resources to combat them when you acknowledge those fears. We believe that analytics tools and proactive monitoring can turn idle threats into reality.

Your business is at far greater risk for losses due to fraud than organisations that take advantage of fraud prevention tools to leverage their resources: the larger the organisation, the more complex and multi-faceted the governance and responsibility matrix for fraud detection. Passive detection methods aren’t enough anymore. It’s been proven repeatedly that instilling proactive efforts to discover or reduce fraud will increase the bottom line and enhance a company’s reputation. Our fraud examiners can assist you, don’t allow fear to paralyse you into inaction.

Free E-Book | Risk Management & ABMS Playbook

The Risk Management & ABMS Playbook provides tools, checklists, case studies, FAQs and other resources to help you lead your organisation into better preparedness and compliance. Our experts share their plays to help you reduce risk, thereby preventing and detecting more fraud.

The first section addresses risk management directly: proper third-party due diligence and critical background screening take centre stage for this game plan. Section two tackles bribery and corruption, with tried-and-true measures you can implement to stay better protected and comply with strict laws and regulations.

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About CRI® Group

Based in London, CRI® Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk Management, Employee Background Screening, Business Intelligence, Due Diligence, Compliance Solutions and other professional Investigative Research solutions provider. We have the largest proprietary network of background screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are, we have the network needed to provide you with all you need, wherever you happen to be. CRI® Group also holds BS 102000:2013 and BS 7858:2012 Certifications, is an HRO certified provider and partner with Oracle.

In 2016, CRI® Group launched the Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management Systems, ISO 37301 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification. ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. As a result, CRI® Group’s global team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organisations. Contact ABAC® for more on ISO Certification and training.

CONTACT CRI® GROUP

Speak up | Report Illegal, Unethical or Improper Behaviour

If you find yourself in an ethical dilemma or suspect inappropriate or illegal conduct, and you feel uncomfortable reporting through normal communication channels or wish to raise the issue anonymously, use CRI® Group’s Compliance Hotline. The Compliance Hotline is a secure and confidential reporting channel managed by an independent provider. When reporting a concern in good faith, you will be protected by CRI® Group’s Non-Retaliation Policy.

COMPLIANCE HOTLINE

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Create a zero-tolerance approach to fraud with ISO 37001 ABMS

Zero tolerance to fraud, how ISO 37001 ABMS can help?

Smart business leaders know that “Tone at the Top” is a critical factor in an organisation’s culture. The behaviour and attitudes exhibited by those at the top of the chainset an example for the rest of the staff to follow. This couldn’t be more true when it comes to ethical standards. If a company is lax and tolerant toward unethical behaviour, it creates a confusing message for employees and actually encourages damaging habits.

When a company creates a zero-tolerance environment for fraud and corruption, the opposite is true: employees understand that ethical behaviour is the norm. Anything outside of those bounds will be punished – perhaps with the loss of their job or even prosecution.

Creating a zero-tolerance approach to fraud doesn’t happen overnight. When your organisation enrols in ISO 37001 ABMS training and certification, the program involves your entire team.

The training helps establish an ethical culture by educating your employees on the following:

• What constitutes fraud, corruption, and bribery, and why these are so damaging to business
• How to identify red flags of fraud, corruption and bribery
• The process for reporting fraudulent and unethical acts
• The organisation’s zero-tolerance attitude toward unethical behaviour and willingness to terminate employees for breaches and prosecute unethical acts
• The serious ramifications for committing fraud or bribery, the legal consequences, and the negative impact on one’s career

Employees shouldn’t be expected to follow a code of conduct that they aren’t aware exists. That’s why ISO 37001 ABMS creates a communication plan through which organisation leaders regularly communicate their ethical behaviour expectations to staff.

The anti-fraud and anti-corruption controls established by ISO 37001 ABMS also apply to personnel at all levels of the organisation. When employees see that higher-level executives are subject to the same ethical standards as the individual at the lowest level of the flow chart, they understand that the organisation is serious about its commitment to having an ethical workplace free of fraud, corruption and bribery. That’s Tone at the Top.

Filed under: All Industries, Anti-Bribery Anti-Corruption Solution, Global, Industry Insights, ISO 37001, Resources by admin
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