The Value of a Fraud Hotline For Your Company
Posted on November 13, 2014
Have a read at this ACFE analytical graphic. It is drawn from the 2014 Report to the Nations on Occupational Fraud and Abuse. Some important conclusions:
- Organizations that had fraud controls in place experienced lower fraud losses than organizations without these controls.
- Small companies had a significantly lower implementation rate for all anti-fraud controls than larger organizations did leaving them particularly vulnerable to fraud.
- 54% of organizations had whistle blower/fraud tip hotlines.
- 42% of frauds were detected by tips from whistle blowers.
- 81% of organizations had external audits of their financial statements yet only 3% of frauds were detected by external audits.
The evidence seems clear, especially if you are a small business. By investing in a whistle blower/tip line you drive down the costs of your fraud losses, increase your detection rate, and save your company money.
Contact Clarium today and see how we can help you create and manage your whistle blower/tip hotline.