Guide to Preventing Workplace Fraud

Regardless of size, all organizations are vulnerable to workplace fraud. Fraud can take many forms—including embezzlement, forgery, theft of inventory and other assets, and computer crime—and can continue unchecked for

years. The financial impact on an organization of these so-called “whitecollar” crimes can be devastating.

As a leading provider of crime insurance (sometimes known as fidelitybond), the Chubb Group of Insurance Companies believes the most cost effective way to deal with fraud is to prevent it. Although insurance can help

recoup some monetary losses resulting from fraud, other losses can never be recovered, such as losses resulting from adverse publicity, the disruption of operations, and time spent with law enforcement officials and others.

However, the consistent application of sound risk management practices can minimize opportunities for white-collar crime, helping to spare an organization the financial loss—and humiliation—that can result from a determined employee’s fraud scheme.

We asked KPMG Forensic^SM, a firm that specializes in fraud detection and prevention, to prepare the Guide to Preventing Workplace Fraud to help our Crime Insurance customers develop loss prevention strategies designed to

reduce their exposure to white-collar crime. This booklet discusses the threat posed by various types of fraud, reviews common types of fraud schemes, and suggests specific risk management strategies.

Although we believe the Guide to Preventing Workplace Fraud is a good starting point for companies that want to develop or review their loss prevention strategies, it is not a substitute for expert advice. We encourage the reader to seek appropriate professional advice for any specific issues that arise when designing and implementing loss prevention strategies.

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One of the ACFE’s most valuable fraud prevention resources, the ACFE Fraud Prevention Check-Up is a simple yet powerful test of  your company’s fraud health. Test fraud prevention processes designed to help you identify major gaps and fix them before it is too late