The Association of Certified Fraud Examiners’ (ACFE) “Occupational Fraud 2022: A Report to the Nations®” indicates that occupational fraud is more likely to be detected through a tip.1 This is nearly three times as many cases as any other detection method, including internal audits, management reviews, or document examination.
The ACFE’s research indicates that median losses were doubled at organizations without hotlines, and organizations with active hotlines saw a 50% reduction in losses during the fraud. Therefore, maintaining a hotline can help increase the chances of earlier fraud detection and reduce losses.
Employees are the eyes and ears of your organization; you want to know what they know. Implementing a third-party hotline provides a completely anonymous and unbiased alternative for your employees to alert you about potential fraud or unethical behavior in your organization.
How Can My Organization Create a Successful Hotline to Report Fraud?
To help provide an effective and successful hotline, here are factors to intentionally think through:
- Strong implementation, planning, and rollout of the hotline;
- Strong leadership to embrace and support the hotline; and
- A consistent effort to keep the hotline top of mind after the initial rollout.
Knowing where to start can be a challenge. That’s where FORVIS comes in. IntegraReport from FORVIS can assist you with implementing a new hotline. IntegraReport offers your organization access to a customized phone hotline and web-based portal, as well as hotline monitoring by fraud professionals at FORVIS.
Ready to Get Started?
If you have any questions or need assistance, please reach out to a professional at FORVIS or use the Contact Us form below.
- 1"Occupational Fraud 2022: A Report to the Nations," legacy.acfe.com.