What makes an effective whistle-blower program effective? How does it help with curtailing organizational fraud? Are you aware that more than 40% of all cases of fraud has been detected with a tip from a whistle-blower?
The above are just some of the main reasons why you need to have an effective whistle-blower program. A program like that is one of the best weapons against fraud which any organization can have; but what makes a fraud-reporting mechanism effective? What encourages a person to speak up despite fears of possible retribution or possible loss of friendship and relationships?
What you need are things which can help overcome the barriers described above.
Think it can’t be done?
The following are great incentives for possible whistle-blowers. Make sure you have one or all, and you’ll surely find the perfect combination which will work best with your organization!
So here’s the 5 Must Haves of an Effective Whistle Blower Program:
It Must Be Easy
One of the most crucial factors for under reporting of fraud is because people are not aware of what channels to use to report it. It should always be free and confidential.
A great way would be to have a hotline number which all workers are made aware of (such as during the company orientation or included as a note in the company manual). For organizations which are in areas of the world where 2 or more main languages are used, it would be best to publish the fraud-reporting information in various languages.
It Must be Rewarding
We’re not just talking of monetary gain here, but if a whistle-blower’s work or means of income will be affected by him or her reporting the fraud, there should be an appropriate compensation to cover the loss.
It Must Protect the Whistle-Blower’s Identity
This is perhaps the most important single factor for this type of program. Reporting fraud can endanger the person involved and so, a typical ‘snitch’ would want to stay anonymous for his or her own safety.
Oftentimes, work-related repercussions can also result from being tagged as a whistle-blower. It is not uncommon to hear of companies which refuse to hire known ‘snitches’ for issues such as the stigma attached to it.
It Must Have Consistent Protocols
Everyone who is a part of the organization should have equal access to information regarding means of reporting fraud. There should be clear guidelines as well as consistency. This could mean that you may need to appoint someone as a fraud prevention manager or leader.
It Must Have Recording and Tracking Processes
Recording and tracking of data is highly important in cases of fraud more so if the incidence is something which may involve legal authorities. The evidences, the progress of each case, as well as all relevant data should be a part of the records for future reference.
Receiving a report for fraud is quite tricky. You’ll have ensure to avoid malicious false reports by checking the veracity of whatever is reported to ensure that only real reports are recognized. You should also have a laid-out plan for responding as well as know the steps needed to protect the whistle-blower and cull the perpetrator.
Do your part to help stop organizational fraud and stop thinking that fraud can’t happen to you. There’s quite a few risk management solutions you should be doing and one of them is all about taking the first step by making sure that you are encouraging potential whistle-blowers to report. A great private investigator team can help you in uncovering cases of fraud and unearth the truth for tough cases. Contact us and we’ll walk you through everything.