According to Occupational Fraud 2024: A Report to the Nations, 63% of organizations provide fraud awareness training to their staff. That said, many organizations develop training programs that lack their desired effectiveness. The Fraud Magazine article, “Filling In the Fraud Awareness Training Gaps”, by Sophia Carlton, CFE, offers practical advice for creating a robust and effective training program. In the following, we will discuss key takeaways.
What’s missing from fraud awareness training?
Fraud awareness training is often provided as a one-size-fits-all presentation to all employees. While it is important for all employees to receive the same basic information, fraud prevention training should include role specific and interactive components. Furthermore, organizations that fail to periodically review their training materials often end up providing outdated information.
Think about how quickly new technology develops. Fraudsters are constantly adjusting their practices to skirt new securities and to take advantage of emerging technologies. Organizations must provide the latest information to employees if they want to effectively prevent fraud.
Finally, customer outreach and training is an often forgotten element to a robust fraud prevention program. Teaching customers how to protect themselves from fraud helps to build trust and loyalty while also preventing fraudsters from taking advantage of your company’s legitimate business practices.
Takeaway 1: Fraud awareness training is for everyone!
With the above said, the first important takeaway from the article is that fraud awareness and prevention training is for all stakeholders. All employees should receive both broad and role-specific training so that they can detect and prevent fraud. Role specific training further ensures that anti-fraud procedures are implemented across all business operations.
As discussed above, customers also play an important role in protecting themselves and your organization from fraud. Educational materials intended for customers should be easily accessible and engaging. The article states, “Generally, customers aren’t fraud or risk management experts. Messaging should explain fraud risks in simple, clear, and engaging language and formats.”
Takeaway 2: Take time to assess your program and develop new strategies
Before diving into new strategies, it is important to measure the effectiveness of your current fraud training and prevention practices. Consider surveying employees and customers to gauge their current understanding of fraud prevention and their perception of the training that your organization provides. Asking employees and customers how they feel about the frequency of training is also useful. Too little training is likely to result in low application of skills, while too much training will likely result in frustration and reduced attention. Use this information to create a program that is interesting, engaging, and informative.
Takeaway 3: Make training relevant and interactive
As mentioned above, fraud awareness and prevention training often lacks role-specific information and opportunities to practice what is taught. This makes it difficult for stakeholders to apply fraud prevention strategies when real situations arise. Simulations are excellent resources for trainees to practice skills prior to an actual threat. The article recommends leveraging advanced technology such as artificial intelligence and virtual reality to simulate real-world scenarios.
Final Note:
Year after year, the Association of Certified Fraud Examiners (ACFE) continues to identify tips as the most common method of fraud detection in organizations. High quality anti-fraud training must include instruction on how to report suspected fraud. Hotlines such as Red Flag Reporting provide stakeholders with a safe, secure, and easy to use method for reporting fraud and other forms of unethical behavior. Combining robust training with clear channels of communication is a game changer in preventing fraud and other forms of unethical behavior in the workplace.