Question

what policies can be put in place to avoud fraudulent activities

Answer 1

#. A fraud policy raises awareness amongst staff that response plans have been devised, to deal with and minimise the damage caused by any fraudulent attack. By explicitly defining actions that constitute fraud you ensure that all employees and third parties are aware of what is and is not acceptable. Fraud policy should have the following components :-

An explicit definition of actions that are deemed to be fraudulent

Allocation of responsibilities for the overall management of fraud

A statement that all appropriate measures to deter fraud will be taken

The formal procedures which employees should follow if a fraud is suspected

Notification that all instances of suspected fraud will be investigated and reported to the appropriate authorities

An unequivocal statement that all fraud offenders will be prosecuted and that the police will be assisted in any investigation that is required

A statement that all efforts will be made to recover wrongfully obtained assets from fraudsters

Encouragement to employees to report any suspicion of fraud

The steps to be taken in the event a fraud is discovered and who is responsible for taking action including:

procedures staff should follow

assigning responsibility for an instant response to the occurrence

recovering funds

dealing with the media

preserving evidence and reporting to the police

The plan, once communicated to all staff and fully implemented, should be subject to a regular review at the board level. All employees, including part-time and contract, should be aware of the organisation’s policy in respect of fraud and the need for vigilance to prevent fraud.