These 4 Things Potentially Drive Fraud Eradication in the Company Ineffective
There is no doubt that whistleblowing hotline is an important element in a company and organization, especially in countries where corruption risks are high. However, having a reporting tool does not necessarily prevent and eradicate fraud in the company. Companies need to build strong policies so that these elements work effectively. There are four challenges in the application of whistleblowing that need to be of concern to companies and organizations:
1. Inadequate infrastructure
Inadequate infrastructure can potentially inhibit fraud eradication. According to Dino Bossi, a partner at Addveritas, during an interview by CNBC, whistleblowers seek three guarantees when they decide to report irregularities that occur in their workplace, two of which are they want a system they can access and confidentiality.
Companies must create whistleblowing channels that are comprehensive, confidential, and adequate for reporting (phone, email, website, and so on). A comprehensive channel provides reporting options for whistleblowers. Make sure not to disable the channels.
2. Low awareness
Adequate infrastructure is not enough; employees and suppliers’ awareness is the primary concern. Companies need to create anti-fraud awareness programs for employees and suppliers, which among other are creating whistleblowing policies and channels and socializing them. Companies must ensure that all levels of employees are aware of the consequences of committing fraud and are pledged to report if they find something suspicious.
3. No follow-up report
Still, according to Dino, another assurance that whistleblowers seek is that they want to know if their reports have been handled and followed up properly. A program should include a case number for each incoming report. If the case addressed takes a long time to investigate, the complainant needs to be informed of the progress.
4. Ignoring the latest technology
Ignoring the latest technology leads to one step behind the fraudsters. Data analytics is a useful tool for companies to respond to fraud pro-actively. Data analytics software is now available that can help anti-fraud professionals detect ‘symptoms’ of fraud so they can handle it as early as possible. In addition, companies need to keep on updating with current digital security to ensure that reported information remains secure.