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Fraud Prevention

$49.00

License – 12 months unlimited access

Category:

Fraud Awareness and Detection

This training explains the most prevalent forms of fraud utilized by business organizations to defraud money. Employees learn how to be more alert to corporate fraud so that it may be recognized and prevented or reduced, as well as their duty to comply with the law and report misconduct.

Types of Fraud

Fraud can be committed in a number of ways but typically involves the use of deception to obtain something of value. The most common types of fraud are:

• Asset misappropriation, including schemes such as embezzlement, bribery and kickbacks, and skimming

• Financial statement fraud, including schemes such as inflation of expenses, misrepresentation of revenue or assets, and hiding liabilities

• Revenue fraud, including schemes such as fictitious sales, overstated sales, and understated sales

• Procurement fraud, including schemes such as falsifying invoices or purchase orders, fake bids, and gift cards

• Cyber-fraud, including schemes such as phishing, spear-phishing, and ransomware

Preventing Fraud

Fraud can be prevented by implementing strong internal controls. Employees should be aware of the common red flags of fraud and know how to report any misconduct. Managers should also be trained to spot potential fraud, and procedures should be in place for investigating any allegations.

Reporting Fraud

If fraud is suspected, employees should report it to their manager or supervisor, the company’s internal reporting service, law enforcement agencies and any other organization that can help prevent further losses. Employees must not attempt to resolve the issue themselves. The primary responsibility for ensuring compliance with existing regulations lies with each individual employee. This should be taken very seriously as any improper conduct could lead to criminal or civil penalties.

It is important for employees to be aware of the various types of fraud that can be committed in order to better protect their company from financial losses. Employees should also be familiar with the procedures for reporting any misconduct, so that it can be investigated and stopped. By better understanding the types of fraud that may occur, employees can also help prevent further losses.