Fraud Deterrence is the proactive management of an organization’s fraud risk in order to minimize the occurrence and impact of fraud. This includes implementing policies and procedures designed to deter, detect, and respond to fraud.
Organizations can take a number of steps to deterrence fraud, such as:
– Implementing anti-fraud controls: Organizations should put in place internal controls to make it more difficult for employees to commit fraud. These controls might include separation of duties, background checks, and regular audits.
– Educating employees: Employees should be aware of what constitutes fraud and know that there are consequences for committing it. Organizations can provide training on fraud awareness and prevention.
– Communicating with vendors and customers: Organizations should make it clear to vendors and customers that they have a zero-tolerance policy for fraud. This communication can help deter potential fraudsters from doing business with the organization.
Organizations need to be proactive in management their fraud risk in order to protect themselves from the devastating consequences of fraud. By taking steps to deter, detect, and respond to fraud, organizations can minimize its occurrence and impact.