In today's work environment, with so many employees working from home and businesses adapting to remote operations, fraud schemes related to the pandemic are on the rise.
In the healthcare industry alone, fraud rose 30% during the pandemic, according to Primary Source Verification provider TrueProfile.io.
Fraud has always been prevalent in the healthcare and financial services industries. But in 2021, TransUnion reported perpetrators shifted their focus to the gaming and travel and leisure industries, with digital fraud increasing 393% and 155.9%, respectively. In general, fraudsters will set their sights on a new industry every few months, preferring sectors with increasing numbers of digital transactions, according to Shai Cohen, senior vice president of Global Fraud Solutions at TransUnion.
Many fraudulent activities can be caught by putting effective internal processes and procedures in place. What is one of the best weapons in the fight against fraud? Your staff. But in order to detect and prevent fraud, employees must first know what it looks like and what to do about it.
So let's start with the basics.
Educate Employees on Company Policies and Procedures
First, you must provide employee training so that your staff understands the proper business protocols at your company. It is important that they understand the repercussions of committing fraud – up to and including criminal prosecution.
Train Employees to Identify Sources of Fraud
Equally important, employees should know how to identify possible fraud. With more people working from home than ever before, there are a growing number of ways that fraud can originate.
Fraud can happen across a wide variety of departmental functions, with the most common being accounting, accounts payable and payroll.
Establish New Processes to Mitigate Future Fraud Cases
With internal fraud, however, the actions taken may not be so clear-cut. Many employees will hesitate to accuse others of illegal or unethical behavior. It is, therefore, critical to create a climate of trust by establishing a confidential way for employees to share their concerns, such as with an anonymous reporting system.
Effective training can help protect against fraud both externally and from within your organization. It begins with a thorough education of your employees, strict protocols for handling fraud detection, and consistent follow-up to ensure that procedures are consistently put into practice.
To learn more about smart resources you can use for payables while combating fraud, click here.