Fraudsters in a company or organization result in losses that constitute 5-7% of the total revenues. There is no system or set of systems that can ensure a 100% safety against fraud. But a company or organization can certainly put in place a few simple systems that will act as deterrents to a potential fraud. One such system is a fraud hotline. Fraud hotlines are toll-free telephone lines operating 24x7. An effective warning system that supports whistleblowing, encourages employees to act when they spot something that falls into the category of a misconduct, financial misappropriation, corruption, bribery or in general a fraudulent activity.
There are certain prerequisites to an effectively operating fraud hotline. A brief list is as under:
- Case Management System: A system which allows all complaints and allegations to be tracked, addressed, investigations conducted and disciplinary or corrective steps taken should be an ideal choice.
- Safeguarding Identities: Safeguarding the identities of whistleblowers against possible retaliation, is a law and a system ensuring anonymity will definitely infuse confidence amongst would be whistleblowers.
- Availability: Employees, tipsters or whistleblowers are most unlikely to give away information during working hours. A fraud hotline working round the clock would be most suitable. An unanswered call or a call which is unable to provide assurance to the whistleblower will work as a deterrent. Employing a personnel with the appropriate skill sets will definitely add to the smooth functioning of a fraud hotline.
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