While no anti-fraud system is infallible, there are steps that can reduce the risk of fraud in your organization. For example:

•  Set up “hotlines” and incident reporting systems.
•  Hire and promote trustworthy people. Do background checks before hiring, and implement ongoing performance reviews and promotion procedures.
•  Adopt anti-fraud internal controls and management review programs.
•  Protect computer systems by implementing security and staff access controls.
•  Create a positive work environment by implementing a code of conduct and ethics. Institute fraud awareness training programs that communicate expected moral behavior to staff members.
•  Have a fraud risk assessment study performed by a forensic accountant.