43% Detection of occupational fraud through tips

dsktop investigation fraud detection through tip

43% Detection of occupational fraud through tips

Every company, both small and large scale, certainly has the risk of fraud, especially occupational fraud. Based on data from Report to the Nation 2020, there are three categories of occupational fraud, which are asset misappropriation, corruption, and financial statement fraud.

Detection method for occupational fraud

Detection is an important concept in fraud investigation because the speed of detection and the way it is detected can have a significant impact on how much the opportunity for fraud can be revealed and how the number of losses can be minimized or even prevented altogether. Data from the report shows that 43% of the fraud cases are detected by tips, 15% by internal audit, and 12% by management review.

Fifty percent of tips are done by employees. As for external parties, the tip is carried out by customers, vendors, competitors, and others.

Whistleblowing as a complaint channel

The existence of a complaint hotline or channel and reporting mechanism can accelerate fraud detection so that the losses incurred can be minimized. Still from the same report, companies that did not have a complaint channel could suffer nearly double the losses, amounting to $ 198,000. Even for the speed of detection, a company that has a complaint channel would be able to detect cases of occupational fraud 6 months faster compared to companies that do not have a complaint channel.

Whistleblowing as a complaint channel is proven to be the most effective method to uncover occupational fraud cases. Integrity Indonesia, through Canary® WBS, gives clients a variety of user-friendly and secure reporting channels. Our trained staff and experienced analysts moderate and review incoming reports carefully and ensure the confidentiality of the reporter (if requested). Clients also have access to their dashboards, which allows them to follow up on reports that have been reviewed. Contact us today for more information about the Canary® WBS.


Also Read:

Occupational Fraud Causes Organizations to Lose 5% of their Revenue Every Year

5 Theories Explain Why Frauds Occurred Repetitively

How ISO 37001: ABMS Keeps Conflict of Interest at bay


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Photo by Alejandro Escamilla on Unsplash


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