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Fraud awareness training
This document discusses fraud prevention. It identifies three types of fraudsters: those who always steal, never steal, and steal under perceived pressure. It then outlines the fraud triangle of pressure, opportunity, and rationalization. Several indicators of potential fraud are described, including lifestyle changes beyond one's means, certain personality traits, and behavioral changes like financial issues discussed at work. The document stresses establishing controls like segregating duties, implementing an escalation policy, and ensuring accountability and proper oversight to help prevent fraud.
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Fraud awareness training
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- 2. • Understanding Profileof a Fraudster • Identifying Indicators of Fraud • Implementing Controls to Prevent Fraud
- 3. Legal: ”A knowing misrepresentationof the truth or concealment of a material fact to induce another to act to his or her detriment.”
- 4. Working: A form ofemployee misconduct where an employee uses deceit to take (steal) or misuse an employer’s resources.
- 5. PEOPLE – 3KINDS • Always Steal • Never Steal • Steal Under Perceived Pressure Donald Cressey Sociology Professor Subgroup of embezzlement felons in prison (exemplary lives before – no prior criminal history)
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- 9. Dimensions Gender Age Position Tenure Department Highest Frequency Male 36 –45 Years Employee 1 – 5 Years Accounting
- 11. LIFESTYLE CHANGES • Expensive/multiplevacations • Upgraded/expensive vehicles • Upgraded clothing or style • New level of donations or gifts Living Beyond Means
- 12. LIFESTYLE CHANGES • Multiplehomes or renovations • Upgraded personal grooming • New business/investment • Recreational activities Living Beyond Means
- 13. COMMON PERSONALITY TRAITS •Controlling/unwilling to share duties • Do not like their work being reviewed • Strong desire for personal gain PERSONALITY TRAITS
- 14. COMMON PERSONALITY TRAITS •Controlling/unwilling to share duties • Unable to relax • "Beat the system" attitude PERSONALITY TRAITS
- 15. COMMON BEHAVIOR CHANGES •Brags about purchases • Unusual amounts of cash in possession • Borrows money from coworkers BEHAVIOR CHANGES
- 16. COMMON BEHAVIOR CHANGES •Collection calls at work • Outside business calls at work • Becomes irritable or moody BEHAVIOR CHANGES
- 17. COMMON BEHAVIOR CHANGES •Territorial over responsibility area • Takes PTO in small increments • Redoes or rewrites work to "make it neat" BEHAVIOR CHANGES
- 18. COMMON BEHAVIOR CHANGES •Unreasonably upset when questioned about work • Starts coming in early or staying late • Discusses/mentions family or financial problems BEHAVIOR CHANGES
- 19. COMMON BEHAVIOR CHANGES •Absenteeism • Manipulative behavior • Looks/acts ill ADDICTION FLAGS
- 20. COMMON BEHAVIOR CHANGES •Illogical/inconsistent decisions and actions • Loss of sleep • Loss of appetite ADDICTION FLAGS ADDICTION FLAGS
- 21. COMMON BEHAVIOR CHANGES •Frequent work issue complaints • Decreased productivity • Change in attire/grooming • Irregular schedules DISSATISFACTION
- 23. TONE AT THETOP
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- 26. SEGREGATION OF DUTIES(Cont.)
- 27. SEGREGATION OF DUTIES(Cont.) **With separate/extra management review
- 28. 1. Assists employeeswith their reporting of incidents, events, conditions 2. Ensures proper evaluation and escalation 3. Identifies incidents, events or conditions • external or internal • not contemplated by existing policy, procedure, or guidance ESCALATION POLICY
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