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
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.
It is always challenging to identify rotten apples in corporate sector but just like kitchen, these can be identified by smelling (Red Flags), occasionally picking a apple (top performers/poor performers) and at times by tasting it (Mystery shopping). I think all this sounds easy but must be difficult to implements, that's the only reason i can think of, why organizations don't do this regularly. Of course background checks remain the 1st part of this whole process.
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