This is the most common method of fraud detection

 Organizations need to help employees speak up as tips from them remains the No. 1 initial fraud detection method (Getty Images/NoSystem images)

While AI-powered software may well facilitate fraud detection in the future, tips from employees remain the No. 1 initial detection method, according to the Association of Certified Fraud Examiners’ 2018 Report to the Nations

As Jennifer Fiddian-Green, CPA, who leads the national forensic and dispute resolution advisory practice at Grant Thornton, puts it, “It’s not an audit. It’s a tip. And it comes from someone who is brave enough to say, ‘I don’t know everything but something’s not quite right over there. Can you check into this?’” 

It’s for this reason that Fiddian-Green believes organizations and governments need to get much better at enabling people to come forward.

“A lot has happened over the past few years in Canada and throughout the world around hotlines. And as per the same report, companies with hotlines detect fraud by tips more often. So it’s important for organizations to really help employees to speak up—to enable them, trust them and support them. And it can be done anonymously.”   

LEARN ABOUT OCCUPATIONAL FRAUD

To understand the different kinds of workplace fraud and boost awareness, see Know red flags of occupational fraud to protect your business.