How is your association handling fraud? You can determine which fraud prevention areas your association should work on by asking critical questions.
Does your association:
- Consider fraud a business risk and periodically identify the fraud risks to which it is exposed?
- Have a strategy for the prevention, detection, investigation, and prosecution of fraud?
- Fraud Policies and Fraud Response Plans cost very little to develop and communicate, but can make a strong statement about the Association’s stance against fraud
- Have a designated individual(s) who maintains ownership for managing the risk of fraud?
- Promote anti-fraud programs as the responsibility of everyone in the Association?
- Does the Association have and effectively communicate a zero tolerance policy for fraud?
- Provide fraud prevention and detection education for its employees?
- Do employees understand what the Association considers to be a fraudulent act?
- Do employees understand the true costs of fraud?
- Do employees know where to report suspicions of fraud?
- Monitor aggressively for fraudulent conduct and evaluate the strategy periodically?
- Are reviews/surprise audits conducted?
- Is there a policy for mandatory vacations?
- Have a plan of action in the event fraud is detected?