...obvious advantages spotting fraud. These include:

* saving money--it been estimated that fraud costs the private sector alone 9 billion [pounds sterling] a year

* avoiding damage to morale--no one wants to work for an organisation where fraud is rife and never investigated

* accountability--tackling fraud is one aspect of public, shareholder and stakeholder accountability.

In extreme cases, fraud has led to the total collapse of companies, leading to substantial job losses, zero-value shares, pensions shortfalls, imprisonment and extreme embarrassment. If fraud is not tackled appropriately it can seriously damage the organisation's reputation and can affect the confidence of your organisation's funders, shareholders, customers and service users.

Fraud must be taken seriously and companies should have a system set up to deal with it. This includes reinforcing key messages about fraud for senior managers. It has been reported that many directors consider that the two most effective ways of preventing and detecting fraud are the normal internal controls and the internal audit (Fraud--risk and prevention, CBI).

Fraud is not only attempted by employees. It can be committed by external...

NOTE: All illustrations and photos have been removed from this article.




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