Attribute 4: Employee Awareness

The Need to Increase Fraud Awareness

Experience has shown that preventative means can never be expected to eliminate fraud and that only limited detection of fraud can be expected through the use of systems, controls, audits and investigations. Staff within the agency are a prime source of detailed knowledge of what is happening. Without their cooperation and initiative most fraud may never be either prevented or detected.

Room for considerable improvement in terms of this attribute in at least 38% of agencies surveyed.

It must be clear that every employee has a responsibility to contribute towards eliminating fraud.

Employee Participation

The importance of employee participation in fraud prevention seems to be comparatively poorly recognised. Participation goes beyond reporting fraud. To achieve truly effective fraud control staff at all levels need to play a part in continually seeking to improve the agency's practices, processes, procedures and systems. Employees possess a detailed understanding of such things. They know what "goes on". However, whilst suggestions from staff in this regard may always have been welcome too few are ever received.

Employees know better than anyone else where there are gaps, weaknesses and failings in the agency's systems.

For an agency to truly make an effective attack on fraud the potential value of employee knowledge must be harnessed. To be able to actively and positively contribute to fraud control managers and staff alike need to:

• embrace an ethical workplace culture.
• recognise the value and importance of personally
• contributing to fraud control.
• develop an understanding of good work practices, systems and controls.
• keep abreast of best practices for preventing fraud.
• become aware of the different types of fraud that can occur in the workplace and how to detect it.

Staff must be provided with appropriate information in appropriate forms. Attitudes and work cultures may need to be modified. This can be very difficult. An awareness program involving a number of elements and initiatives will be necessary.

Fraud Awareness Program

To address the issue of employee participation in fraud prevention and detection each agency will need to implement fraud awareness initiatives which best suit its situation. Cost effectiveness and value-for-money must never be overlooked.

A series of different programs and approaches may be required to suit differing types of employee and corporate cultures within the agency. For example, training (in a narrow sense) may form but one element of a range of actions required in this area. Training may be required to be delivered in a variety of different forms and contexts to be effective.

Simply sending a message is inadequate. For example, issuing a circular or management letter to staff will not usually work. Repeated reinforcement in a variety of ways is required. Unless actual attitudes and behaviour change then success cannot be claimed.

The following points are provided as a guide to some of the main elements which agencies should at least consider in developing their program.

• institute an ethics campaign

An ethics campaign can incorporate both general and specific initiatives. General initiatives may include such measures as seminars; publications; videos; a code of conduct; and so on. Specific initiatives may relate to the different organisational cultures which exist within the agency. There is evidence to suggest that without the benefit of specific initiatives, general initiatives are not fully appreciated and may not be effective.

• conduct fraud awareness seminars and discussion groups

Awareness seminars or training courses can take many forms. They should be aimed at all levels of management and staff (taking into account the different corporate cultures) and may deal with topics such as:

• ethics and the corporate culture
• fraud awareness (general)
• managerial and staff responsibilities
• code of conduct
• fraud reporting.

Alternately, discussion groups organised and run by a professional group leader may also achieve effective results. Employees may be more receptive to discussion amongst their peers in small informal groups. It is important that the group leader is properly equipped to ensure the appropriate issues are discussed and that the correct advice and information is given to those attending.

Matters to be discussed could include possible indicators of the existence of fraud. Greater employee awareness of such signs may alert people to areas of potential threat of fraud prior to it occurring. This may result in current fraud being uncovered, catching other fraudulent activities in their early stages and even in fraud being deterred from the outset.

A selection of possible indicators is provided at Appendix 3. Please note that there is no intention for such a listing to be regarded as complete or exhaustive or to serve as a checklist in any way.

• instructional videos

Videos can be utilised at seminars, courses, presentations or discussion groups. Whilst prerecorded video material may be very useful it can be expensive and hence should be acquired selectively and based on needs. In-house production of video material will generally be even more expensive so the impact and value of such an approach also needs to be considered. It may sometimes be better since directly relevant situations can be explored. Where video material is available local level operational line managers should be encouraged to take the initiative and assemble their staff for a brief video session at appropriate times. It would then be the manager's prerogative whether any subsequent discussion was appropriate at that time.

• fraud awareness publications

The act of bringing fraud awareness to the attention of employees through publication of material such as posters and newsletters can be an effective technique. Posters can be used demonstrating anti-fraud messages or depicting relevant situations. Newsletters can be used to raise employee awareness in the prevention and detection of fraud; for example by publishing statistics about how much fraud was reported and progress the agency has made to deal with it.

Publications can be used to inform employees of the latest developments in combating fraud and of a variety of "best practice" information. The latter may assist local operational and management staff in continually seeking useful reforms to local practices to better control the risk of fraud. As an illustration a selection of good management practices which may assist in combating fraud is provided at Appendix 4. Again, there is no intention for such a listing to be regarded as complete or exhaustive or to serve as a checklist in any way.

• circulate policy statements and the agency's determination to prevent fraud, emphasising that offenders will face action

• report investigations and disciplinary action against dishonest employees

It can be a positive step to publicise action taken. It encourages employees not to become involved in fraud and affirms employee confidence that perpetrators, if uncovered, will face sanctions.

• distribute a guide on fraud reporting processes including discussion and definition of employee responsibilities to report fraud (discussed at attribute no. 6)

• circulate the agency's policy on protected disclosures (discussed at attribute no. 7)

• distribute an employee code of conduct (discussed at attribute no. 10)