6 Crucial Tips on How to Safeguard Against Fraud

Complacency is the fraudster’s friend so here are 6 valuable insights from Charlotte on how to guard against deception.

  1. Build fraud prevention into your business risk assessment
    Fraud risk assessments need to be continual and dynamic so they can be agile enough to change as your risks change. Fraud prevention should be built into your business risk assessment so it’s aligned with your business strategy, structure, operations and appetite. 
  2. Have a holistic approach
    Fraud prevention should not focus solely on cyber security.  It should be a holistic approach that includes HR, internal audit, compliance, IT, facilities management and your service providers. 
  3. Task one person to oversee data security
    Technology is continually changing and fraudsters will always come up with new inventive ways of getting what they want. But traditional frauds still occur, so make sure at least one person is tasked with overseeing data security in order to support the Board. They need to be trained to monitor and manage it day-to-day and stay abreast of how fraud has been spotted in other businesses. They need to be able to identify potential threats and test what preventions are in place in order to spot any gaps in your defence.
  4. Train all staff in fraud prevention
    Fraudsters will succeed if they find a hole in your defences. If everyone in the company is keeping an eye out for fraud attempts then the fraudster will be less likely to succeed. Make fraud prevention training a part of continual staff training so it is always fresh in people’s minds.
  5. Be sceptical and cautious
    Encourage staff not to be complacent to fraud risks as that is what fraudsters are hoping for. Teach staff to be sceptical to requests from others especially if they are putting them under pressure to do something quickly. Teach them to be cautious not curious as opening a hyperlink with malware can have serious repercussion for your business. Teach staff that if something is too good to be true, then it is likely to be a fraudster setting a trap.
  6. Know your staff
    It might be an ‘inside job’! Fraud can come from an internal threat as well as an external threat so make sure your processes are covered by “4 eyes checks” and get to know your staff really well. Trustworthy employee’s situations may change and external pressures may cause them to do unexpected things.

For more details on how we can help you please contact +44 1481 730988

by Charlotte Wallace

Charlotte is a Compliance Officer based in Guernsey. She holds the International Compliance Association’s diplomas in Compliance, Anti-Money Laundering and Financial Crime Prevention. Charlotte also holds the Institute of Chartered Secretaries and Administrators’ diploma in Offshore Finance and Administration and a BSc (Hons) in Environmental Science. With the ability to see both sides of the equation when dealing with customer due diligence which helps PEA to fulfil their regulatory requirements.

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