ABSTRACT

Being a fraud detective is usually fun but it can be no fun at all if management prefer it to stay hidden. But fraud is just a waste of resources and it is in management´s interest to incentivize its own people to spot fraud early. Simply put, management should encourage everyone in the organization to have a healthy sense of curiosity and take up issues that they feel are unusual, rather than presume that someone else, or some complex system, will spot them. By encouraging the whole organization to participate in detecting fraud early, a ‘Fraud Watch’ community can be created inside the organization, which is better attuned and more able to respond to any kind of attack on the organization. To be able to empower the whole organization to find fraud early, some training is required to recognize that people are in fact very good at spotting fraud and corruption as long as they are encouraged to do so.