On March 1, BerganKDV’s Forensic and Data Services team proudly announced the launch of PlainSight, a fraud hotline designed to mitigate fraud risks for any and every organization. With fraud becoming more prominent than ever due to increased reliance on technology, more organizations are aiming to promote fraud detection in their work setting. There are several ways that organizations can bring awareness to workplace fraud, whether that is through regular training or audits, but fraud hotlines are proven to be more effective and the preferred method for employees.
According to the Association of Certified Fraud Examiners (ACFE) 2020 Report to the Nations, 43% of frauds were discovered by a tip, almost three times more than the second-place method of conducting an internal audit. Employees often know or witness fraud occurring within their workplace and want to report it. The key is providing a mechanism to anonymously report fraud tips so they can be investigated and establishing an open environment where employees feel empowered to speak up.
Since 2010, the number of organizations that rely on fraud hotlines has grown tremendously and is continuing to trend upward. In the 2020 Report to the Nations, 49% of organizations polled used a fraud hotline at their workplace.
Will the 2022 Report to the Nations show more than 50% of organizations using hotlines?
All signs point in that direction.
That is because the advantages of utilizing a workplace fraud hotline go beyond creating a culture of awareness and security. Hotlines are typically more cost-effective than other technological solutions. They also help organizations keep their profits out of the hands of fraudsters and streamline the amount of time it takes to catch a criminal. Here are some ways fraud hotlines can positively make a difference for an organization:
- Median losses are reduced from $198,000 without a hotline to $100,000 with a hotline.
- Fraud detection is reduced from 18 months to 12 months on average with the use of a hotline.
- Small organizations (less than 100 employees) that use a hotline have 47% of cases detected by tip vs 31% for larger organizations.
Although hotlines are an effective tool for preventing fraud, it’s important to note that they are even more effective in combination with other fraud defense tactics. To fully utilize a fraud hotline, employees need to be educated on when to best use it and why. Coupling a hotline with routine fraud awareness training is key to ensuring employees can use it with confidence and protect your organization against those who wish to hurt it.
If you are interested in using a fraud hotline at your organization, BerganKDV can help. We developed PlainSight to put the power back into your employee’s hands, by making the tool completely anonymous and easy to use. Our Forensic and Data Services team is also heavily experienced in fraud investigation and can assist your organization with next steps if fraudulent activity is discovered with PlainSight. We would be happy to answer any hotline questions you have and how PlainSight can make a difference to your organization. Let’s talk about it!