Education is a highly effective fraud prevention technique for companies. Studies have shown that companies with anti-fraud educational programs in place can cut their fraud losses in half. By educating employees, management is giving them the tools to help look for and stop fraud. This information helps them know what behavior is acceptable and not acceptable.
The training does not have to be elaborate. It simply has to show employees what to look for, highlighting the most common areas of abuse. A company’s training session could (should?) include things like this:
- Introduction to fraud: Provide the basics about fraud, how it is committed, and how it affects the company.
- Areas of the company most vulnerable to fraud: Tell employees about the most at-risk areas and assets of the company so they can be on the lookout.
- Common ways that fraud could be committed at the company: Give concrete examples of some of the most common frauds that employees might witness.