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Countering fraud<br />A guide for managers<br />Warren Park<br />
Learning objectives <br />Understand the nature of fraud<br />Provide a thought process for countering fraud in any situat...
Fraud and theft offences<br />Fraud Act 2006<br />False representation<br />Failing to disclose information<br />Abuse of ...
Common terms<br />Gain<br />Loss<br />Money or other property<br />Account or other record<br />Intentional act or omissio...
Spot the fraudster? <br />
People may commit fraud when …<br />Motive / Pressure<br />Aim to break up the Fraud Triangle<br />Fraud<br />Triangle<br ...
Motives and pressures that may lead to fraud<br />Business reversal<br />Employee / employer relations<br />Personal failu...
Deception<br />A person’s own perception of a  financial problem that can’t be shared<br />Fear of losing personal status<...
Reducing motives / pressures<br />Provide easy access to confidential help and support<br />Share the problem<br />Identif...
Reduce opportunity through controls<br />Impersonal<br />Often low cost<br />e.g. password<br />Controls work unless<br />...
Promoting the right attitudes<br />Leadership by good example<br />Sets the right culture<br />Tell them<br />Training<br ...
Tackling the risk of fraud in any situation<br />Motive / Pressure<br />Aim to break up the Fraud Triangle<br />Fraud<br /...
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Fraud management in ten minutes presentation

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Fraud management in ten minutes presentation

  1. 1. Countering fraud<br />A guide for managers<br />Warren Park<br />
  2. 2. Learning objectives <br />Understand the nature of fraud<br />Provide a thought process for countering fraud in any situation<br />
  3. 3. Fraud and theft offences<br />Fraud Act 2006<br />False representation<br />Failing to disclose information<br />Abuse of position<br />Possession / making articles for fraud<br />Participating in fraudulent business<br />Obtaining services dishonestly<br />Theft Act 1968<br />Theft<br />False accounting<br />
  4. 4. Common terms<br />Gain<br />Loss<br />Money or other property<br />Account or other record<br />Intentional act or omission<br />Not an error<br />Dishonesty<br />Seen as dishonest by an ordinary decent person<br />Defendant knows this<br />
  5. 5. Spot the fraudster? <br />
  6. 6. People may commit fraud when …<br />Motive / Pressure<br />Aim to break up the Fraud Triangle<br />Fraud<br />Triangle<br />Perceived Opportunity<br />Attitude / Rationalization<br />
  7. 7. Motives and pressures that may lead to fraud<br />Business reversal<br />Employee / employer relations<br />Personal failure<br />Physical isolation<br />Status gaining<br />Violation of ascribed obligations<br />
  8. 8. Deception<br />A person’s own perception of a financial problem that can’t be shared<br />Fear of losing personal status<br />Fraud offers a secret solution<br />
  9. 9. Reducing motives / pressures<br />Provide easy access to confidential help and support<br />Share the problem<br />Identify alternative courses of action<br />Follow good employment and other practices promoting fairness <br />Help grievances come into the open and deal with them equitably<br />
  10. 10. Reduce opportunity through controls<br />Impersonal<br />Often low cost<br />e.g. password<br />Controls work unless<br />Poorly designed<br />Not operated properly<br />Most common controls<br />Restrict access<br />Segregation of duties<br />Checking and supervision<br />
  11. 11. Promoting the right attitudes<br />Leadership by good example<br />Sets the right culture<br />Tell them<br />Training<br />Code of Conduct<br />Signing publicly to have read and understood<br />People want to believe they are good<br />People must rationalize their bad behaviour <br />Make rationalization of bad behaviour harder<br />
  12. 12. Tackling the risk of fraud in any situation<br />Motive / Pressure<br />Aim to break up the Fraud Triangle<br />Fraud<br />Triangle<br />Perceived Opportunity<br />Attitude / Rationalization<br />

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