Studies have shown that fraud awareness training is one of the keys to preventing and detecting fraud at corporations. If employees know what fraud looks like, they can help avoid it and they can report suspicious behavior. And corporate executives agree that fraud awareness training is key (see below graphic; click on it to view full size).
Most current ethics and compliance training programs have failed. FraudAware specializes in fraud awareness training, and comes highly recommended.
From years in both sales and sales management I can tell you that means/motive/opportunity apply to commission fraud just as much as they do to any other form of theft.
I think that I have seen, investigated, and brought disciplinary action against salesmen who committed just about every form of commission fraud you could think of, from the embarassingly simple and easy to detect, to the most sophisticated (but still far from “perfect”).
The strongest deterrents are awareness, an in-depth understanding of your own systems (which not all managers have) the ability to think your way through potential ways to game the system, and a zero-tolerance policy of cracking down on offenders.
Tracy, if most current fraud awareness programs have failed, how can education be the key to preventing fraud?
I think most fraud awareness programs are inadequate. They’re not teaching the right things often enough.