Fraud Risk Function in International Markets

It's been a long time since i wrote on the blog.I got an opportunity to work on a international project & it is proving to be one of the best phases of professionsal life in Fraud Risk Management function.We did fraud risk assessment & found that factors like employee motivation,controls functions ,continuous employee background/activity verification ,reconciliation,policy compliance in different departments,management capability etc are playing a vital role in terms of controlling fraud levels.Though these are known to every one & applies in all markets but motivation for fraudsters vary from market to market , Deterrent types also varies,one deterrent which works in X market may not work in Y market.Similarly fraud prevention methods vary from country to country due to logistics, people capabilities.

Comments

Unknown said…
I am in total consent on factor mentioned. I believe "FRAUD" in its basis is an intent which remains same in any form be it be white collar. Its nature / texture varies depending upon market, acceptability, and to some extent deterrent set.
November 13, 2009 at 6:17 PM
Post a Comment

Popular posts from this blog

Journey from counterfeit cigarettes to missile launchers

Great work done by law enforcement agencies in USA, one thing I liked most about this investigation was that when they started the investigation it was about smuggling of counterfeit cigarettes but concerned officers didn't brush it off by thinking it as innocent smuggling and later on same set of criminals also got involved in smuggling of weapons. Same has happened in India in 1990s but i think people involved in it didn't realize that routes for smuggling of goods can also be used for smuggling of weapons. I am tempted to compare this with frauds in corporate sector wherein at times people think that if somebody has inflated conveyance claim it's not a big deal and it's just a small amount. They don't realize that same guy would over a period graduate to other bigger frauds as he has tasted blood once and just like Vampries ( I loved the Edward and Bella series) once some one has tasted fruits of fraud it's very difficult to control it.
Read more

RBI guidelines of Fraud Risk, Do we see a job opportunity here?

These are basic guidelines which would go a long way towards fraud prevention & detection. Any Anti fraud expert would vouch for it that job rotation is the most effective and efficient way of fraud detection. I have heard stories about how clerks in certain nationalized banks in India, would give a pass to promotions to avoid getting transferred. There may be genuine reasons for the same or a understanding that if they move, irregularities may come to light. I have seen Indian regulator being very active in terms of taking proactive action and people working there understand what they are talking about. I recall this is second set of specific guidelines issued by RBI on fraud risk. Good to see that fraud is being recognized as a key threat, at least those organizations who think of fraud risk management related investment as a cost would understand importance of it. I expect rise in demand for Anti Fraud professionals through such steps, similarly vendors provid...
Read more

Fraud Prevention-Line or support function

Fraud prevention is often treated as a cost centre rather than a strategic business unit.what can anti fraud professionals do to change the perception.i truly believe that if collections can be treated as a line function then Fraud prevention cell too should be treated as a line function rather then a support function.I feel that this unit is always treated as a supprt unit due to which it doesn't get it's dues.I feel that if goal sheet for the unit is revised to show more of tangible results then it may help in changing the perception.At the same time repositioning is required to move potential savings to actual savings.one step could be to conduct fraud checks at the end of all process so that true savings can be shown.for eg post credit sampling would highlight cases with ctaual savings as all these are approved cases.would like to hear other thoughs about this
Read more