Methods of Fraud Prevention Course

Course Contents

Day One

What Fraud Is and What It Is Not

• Legal definition
• What behaviours are unacceptable
• Errors and abuse.

Fraud Perpetrators

• The fraud-triangle theory
  • Sufficient pressure
  • Adequate opportunity
  • Ability to rationalize a dishonest act

• Dispel what a fraud perpetrator looks like
  • Age groups
  • Income levels
  • Both genders.

How Fraud Hurts the Organization

• Lost resources
• Decreased productivity
• Investments of time and money into investigation
• Remediation
• A hit to the company’s reputation
• Distorted company goals through financial engineering
• Lowered employee morale.

Day Two

How Fraud Hurts Employees

• Increased employee scrutiny
• Decreased trust throughout the organization
• Possibility of decreased salaries
• Possibility of loss of bonuses
• Possible layoffs
• Need to clean up after any mess created.

How to Identify Fraud

• Financial/Transactional Red Flags
  • Red flags regarding the structure of or personnel involved in a transaction
  • Red flags within the organization’s operations
  • Red flags within the accounting system
  • Red flags regarding the organization’s financial performance

DAY THREE

Behavioral Red Flags

• Living beyond their means
• Financial difficulties
• Unwilling to share duties
• Unusually close relationship with vendor/customer
• Wheeler/dealer attitude 
• Defensiveness
• Addiction problems
• Unwilling to take vacation days
• Constant complaints about inadequate pay
• Complaints about lack of authority.

How to Report Fraud

• Most frauds uncovered by whistle blowing
• Fraud deterrent designs

Punishments for Fraudulent Acts

• Spelled out explicitly to all in advance
• Addressed with certainty, swiftness, and severity.

Note: Available as Classroom Training as Well as Online Training