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Addressing “Perception of Detection” with Certified Fraud Examination
- June 23, 2023
- Posted by: Raghav
- Category: Blogs
One of the most important aspects of a varied fraud detection technique is the perception of detection. Preventing fraud is often less expensive than attempting to recover damages. One low-cost yet effective fraud prevention strategy is to raise the perception of discovery. Individuals with an inherent deceitful character are more likely to perpetrate fraud and eventually engage in wrongdoing in the workplace. However, the nature of their deception is less likely to succeed if they feel they will be caught. Internal controls, for instance, are most successful at preventing fraud when those who may be motivated to steal from a public entity are aware of them. This entails being open about the fact that the institution is taking steps to prevent and detect fraud.
Employee fraud, often known as occupational fraud, occurs on an alarmingly regular basis. According to the Association of Certified Fraud Examiners (ACFE), organisations tend to lose 5% of their annual revenue to fraud. Adding to this, the average cost connected with occupational fraud is $150,000, and it takes an organisation 18 months to detect such fraud. So, if an individual in your organisation begins stealing now, it will be months, if not years, before their actions are discovered.
Certified Fraud Examination (CFE) certificate courses recommend various policies and processes as part of the training curriculum to send such a message throughout the organisation. The overall organisation’s fraud problem can be solved by educating personnel or hiring individuals with a fraud examiner certification. A CFE training session can incorporate fraud awareness into the employee’s education as part of the test. A CFE certificate gives value to the firm and the employee by recognising the company’s commitment to anti-fraud policies and regulations.
Raising the “Perception of Deception” of your employees
The eagle’s eye view of a CFE ensures that an organisation boosts perception by incorporating the following:
✔ Separation of responsibilities
Organisations should never delegate total authority to a single person; instead, segmentation of duties should be implemented across the departments. This feature puts employees in the position of not engaging in illegal or improper behaviour for fear of getting caught. According to the CFE certificate courses, management can be included in any process to provide direction and accountability.
✔ Keep a fraud policy in place
The vast majority of employees understand that fraud is a criminal offence. However, it doesn’t hinder your organisation’s attempts to eliminate employee theft to clearly define fraud and the consequences for a thieving employee.
✔ Get in the thinking hat of a fraudster to avoid malicious acts
While most employees would resist the desire to steal, if you can imagine how to commit fraud, employees can as well. Take the time to investigate fraud losses concerning other organisations featured in the press. What happened? Do you have the same control flaws in your organisation?
✔ Job rotation
When one person stays in the same professional position for an extended period of time, the chance of workplace fraud increases. This emphasises the importance of work rotation, preventing people from directing their minds in the wrong direction.
✔ Risk assessments can help you strengthen your defences
Conduct risk assessments regularly in your organisation to evaluate the potential for fraud and the efficacy of internal controls in identifying and preventing it. Ensure that each internal control has an owner who is accountable for guaranteeing its effectiveness.
✔ Surprise audits
Impromptu audits are a terrific way to keep staff on their toes, giving them little to no time to cover up any wrongdoings.
A CFE prevents fraud in an organisation by training professionals to act proactively under the perception of detection. Professionals are driven by skills, knowledge, best practices, and the ability to rationalise a potential malicious act.
Acting as a catalyst for predictive and preventive measures on fraud detection, deterrence, and prevention, Netrika collaborates with ACFE to deliver the CFE course across industry verticals. We provide best-in-class certified training professionals with extensive experience in the fraud investigation and prevention arena to guide this process and deliver expert training. Netrika’s instructor-led CFE training course educates and raises awareness for both professionals and organisations in order to thwart prospective frauds and minimise the risk of having already harmed the entity.