These guys are so motivated, they keep on coming with different versions, always looking out for that weak spot to hit on. It's exciting to be on the anti fraud side, very challenging, never gets boring.
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.
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
If one wants to have a robust controls framework one can not chose to leave any area out of the scope. It starts from controls around hiring (background checks, sourcing of profiles, vendor payments, staff referrals etc), how the processes are designed (you don't want to provide opportunities by having deficient processes)- number of controls doesn't matter, it's the effectiveness which matters most -prevention/detection related controls should be part of process design, procurement function (vendor selection, transparent bidding etc), IT controls & most importantly when a new system is being bought/old system being replaced, a comprehensive UAT covering all the aspects, you don't want to leave anything to chance. Above all a well designed process which allows staff/vendors to report wrong doing, & action to be taken in case a event happens. I think designing controls is just half the work & unless these are periodically tested, one can not provide assur...
Comments