Anti-fraud examples

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Anti-fraud examples

While by no means exhaustive, here are some typical fraud prevention and response strategies. Prevention strategies •

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Identification standards o Customer identification standards: Know Your Customer (KYC), 100-point identification system, etc. o Employee identification standards: Pre-employment checks, identification swipe cards, etc. Computer systems o Security of records and information: Firewalls, passwords, encryption, etc. o Automated analytics: Analysis of transactions to detect irregularities, etc. o Central industry database: List known fraudsters or high-risk customers Internal controls o Segregation of duties o Limiting access to systems and information based on role o Documented procedures and processes o Reporting Education and policy o Develop culture of fraud awareness o Ensure people are aware of their responsibilities

Response strategies: • • • • •

Independent reconciliation of accounts and records Post-incident analysis process: Analysis of customer records, supplier and HR databases, customer and client accounts, etc. Exception reports Staff reporting policy Regular review of anti-fraud measures, particularly following an incident