Vitug Vlogs: Fraud

MANILA, Philippines – Rappler’s editor at large Marites Vitug says companies consider fraud a global risk, and the fight against it begins at the top. Here’s her video blog.

Fraud is not a government monopoly. Corporations all over the world consider fraud or corruption a global risk—and they are fighting it.
In a survey of close to 100 countries conducted last year, it was found that the most effective way of detecting fraud was through anonymous tips given through hotlines.
External audits, would you believe, was among the least effective.
This shows that, if the companies nurture honesty, then people will come forward and report wrongdoing.
This also shows that external auditors sometimes sugarcoat their reports or massage them so as not to hurt their clients and lose big contracts.
They lose sight of their duty to tell the truth.
How do you detect a fraud perpetrator in your company?
The survey, conducted by the US-based Association of Certified Fraud Examiners, pointed out these red flags: the employee lives beyond his means; has financial difficulties; and enjoys unusually close ties with suppliers or customers.
What’s striking is the profile of the usual suspect: he’s male, has worked with the company for 1 to 5 years, aged 31-45, and is with accounting, operations, or sales.
Why is this so? Men are usually in positions that give them the opportunities to commit fraud.
The fight against fraud begins at the top. Leaders should set the tone for integrity.
It is said that corruption is not so much caused by power but by fear: the fear of losing power.

– Rappler.com