The Wayne State University Office of Internal Audit is happy to participate in the Association of Certified Fraud Examiners (ACFE) International Fraud Awareness Week, Nov. 12–18, as an official supporter to promote anti-fraud awareness and education. The movement, known commonly as Fraud Week, champions the need to proactively fight fraud and help safeguard business and investments from the growing fraud problem.
According to an ACFE study, Occupational Fraud 2022: A Report to the Nations, fraud costs organizations worldwide an estimated 5% of their annual revenues. A single instance of fraud can be devastating. The median loss per fraud case was $117,000, and more than a fifth of the cases involved losses of at least $1 million. In addition, an organization’s culture and ethics play a big role in how employees act. As a leader, you want to create a culture that will positively influence employees and prevent negative associations with their workplace, which can lead to job turnover, subpar performance or even fraud.
Below are some simple actions organizations can implement to reduce vulnerabilities to fraud:
- Be proactive. Adopt a code of ethics for management and employees. Evaluate your internal controls for effectiveness and identify areas of the business that are vulnerable to fraud.
- Establish hiring procedures. When hiring staff, conduct thorough background investigations. Check educational, credit and employment history (as permitted by law), as well as references.
- Train employees in fraud prevention. Do workers know the warning signs of fraud? Ensure that staff members know basic fraud prevention techniques. Our office provides awareness trainings focused on internal controls, ethics, fraud, risks and even self-care.
- Implement a fraud hotline. Fraud is still most likely to be detected by a tip. Providing an anonymous reporting system for your employees, contractors and clients will help uncover more fraud. WSU’s fraud hotline is 313-577-4183 and online reporting is available at internalaudit.wayne.edu/report.
- Increase the perception of detection. Communicate regularly to staff about anti-fraud policies, ways to report suspicions of misconduct, and the potential consequences (including termination and prosecution) of fraudulent behavior.
If you suspect fraud or any suspicious activity, you can report it to our office: