ABSTRACT
This chapter aims to provide a general overview to the approach used by a firm in the regulated sector in managing their fraud risk through fraud prevention techniques. It explores the key drivers for fraud prevention before examining both the inhibitors to implementing fraud prevention and the consequences of not adequately managing fraud risks. Fraud prevention through the management of fraud-specific risks is a key component to fraud management. Financial services firms in the UK are regulated by the Financial Services Authority (FSA). Treating Customers Fairly (TCF) is an initiative launched by the FSA whereby they expect all FSA regulated firms to be able to demonstrate to the FSA and to them that they are consistently treating their customers fairly and delivering against all the TCF outcomes relevant to their business. The first consideration is to formulate and issue a fraud policy. Key performance indicators (KPIs) are a methodical technique for measuring policy compliance.
