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Fraud Prevention Tip #44: Prepare for Investigations Before the Alarm Goes Off

Here are a few quick suggestions as you prepare to respond to a fraud incident.

  1. Be ready to respond to fraud incidents before they surface. Periods of calm like right now are when you put the pieces in place. Then when wrongdoing or fraud is suspected, you already know what to do. You just execute the plan. While every case is unique, there are a few common issues that will need to be addressed, including:
  1. Identify the skills and relationships that might be needed, and assemble them in advance. These needs may include:
  1. Think through what message to deliver to employees, customers, the press, shareholders and others. Craft the basics of that message now.
  1. Be clear on who is authorized to investigate, handle requests for information, and interact with any outside parties.
  1. Be ready to encounter the following from organization leaders:

What you’ll need to provide in return:

Chances are that fraud detection and response is a rare occurrence in your organization. But that’s no excuse to fail to prepare. Use the items in this article to start a healthy discussion about what to do and what to avoid, especially in the early phases of investigation. Let us know if we can help you prepare.

John J. Hall, CPA

John J. Hall, CPA

John J. Hall, CPA, is an author, speaker and results expert who presents around the world at conventions, corporate meetings and association events. Throughout his 35-year career as a business consultant, corporate executive and professional speaker, John has helped organizations and individuals achieve measurable results. He inspires audience members in corporations, not-for-profit organizations and professional associations to step up, take action and “do what you can.”