Fraud is detected through tips more than any other method, making hotlines one of the leading anti-fraud controls. More than 39 percent of whistleblowers used telephone hotlines, and more than half used email or a web-based form to report their complaints/tips.
However, a lack of trust can affect an organization’s ability to obtain tips through a hotline. According to the Association of Certified Fraud Examiners, deploying a quality program and establishing a positive tone from leaders are critical for an effective hotline program.
According to a recent article in Fraud Magazine, here are some of the top factors leading to hotline reporting system distrust:
- Employees don’t understand the system
- Lack of personalization for an employee’s concern
- Improper handling and lack of training
- Hotline management
- Too many reporting mechanisms
- Overemphasizing “credible” complaints
- Obstacles of negative incidents and retaliation
- Relying on actions speaking louder than words
And here are some tips for building a trusted hotline program:
- Training and awareness
- Good communication
By being aware of hotline reporting trepidations and striving to build a trusted program, organizations can help prevent fraud.