In case you missed it, July 30 was National Whistleblower Day, which reminded us of the importance of whistleblowing as a means of fraud detection. A company’s culture and resources, including an effective fraud hotline, can greatly assist with whistleblowing and fighting fraud.
The 2018 Report to the Nations by the Association of Certified Fraud Examiner’s states the following regarding whistleblowing and hotlines:
- Tips are by far the most common initial detection method (40 percent of cases)
- Employees provide more than half of tips
- Organizations with hotlines detect fraud by tips more often (46 percent versus 30 percent of cases)
- Fraud losses were 50 percent smaller at organizations with hotlines than those without
- Organizations without hotlines were more than twice as likely to detect fraud by accident or external audit
BKD offers IntegraReport hotline services to assist your company with whistleblowing and fraud detection. IntegraReport hotline services are available any time and provide two ways to leave reports (online and toll-free number), which are monitored by BKD fraud professionals.