Fraud Awareness Week
November 13, 2023
November 12th-18th is International Fraud Awareness Week. Do you know how to spot fraud and how to help protect yourself and your place of employment? The red flags listed below do not necessarily mean someone is committing fraud, but they may indicate the need for increased awareness.
Red Flags Associated with Fraudulent Behavior
- Big spending.
- Financial difficulty.
- Disregards conflicts of interest with vendors and customers.
- Unwillingness to share job duties.
- Paranoid or defensive behavior.
- Dishonest behavior.
How to Help Prevent Fraud
- Establish a company-wide code of conduct.
- Perform internal audits.
- Receive management certification of financial statements.
- External audits of internal controls related to financial reporting.
- Management review.
- Hotline to report suspicious activity.
- Conduct fraud training.
The impact of fraud can be serious for both individuals and businesses, sometimes leading to job losses, the loss of savings and investments, and a strain on resources. The ability to spot and report red flags can make a significant difference in the lives of others.