Internal and External Fraud Detection & Prevention Policy

Purpose:

The purpose of this policy and procedure document is to establish a framework for detecting and preventing fraud, both internal and external, within the Staffing Future. This document outlines the key policies and procedures for identifying, assessing, and mitigating fraud risks and guides implementing effective fraud prevention practices.

Policy:

The following policies apply to fraud detection and prevention:

Fraud Prevention:

Staffing Future is committed to preventing fraud by promoting a culture of integrity, ethics, and transparency. This includes establishing appropriate controls and procedures to deter and detect fraudulent activities.

Fraud Detection:

Staffing Future is committed to detecting fraud promptly through the implementation of appropriate monitoring and reporting mechanisms.

Fraud Response:

Staffing Future is committed to appropriate action in response to suspected or confirmed fraudulent activities. This includes conducting investigations, implementing corrective actions, and reporting fraud to the relevant authorities as required.

Procedures:

The following procedures apply to fraud detection and prevention:

Fraud Risk Assessment:

  1. A fraud risk assessment should be conducted regularly to identify potential fraud risks.
  2. The assessment should consider relevant internal and external factors, such as organizational structure, culture, and industry trends.
  3. The assessment should identify areas of vulnerability and the potential impact of fraud on Staffing Future.

Fraud Prevention:

  1. Appropriate controls and procedures should be implemented to prevent and deter fraudulent activities.
  2. Controls should be designed to address specific fraud risks identified in the fraud risk assessment.
  3. Fraud prevention controls should be reviewed and updated regularly to ensure their effectiveness.
  4. Segregation of Duties:

Roles and responsibilities should be separated to prevent collusion and ensure accountability. For example, the person who authorizes a transaction should be someone other than the one who records or reconciles it.

  1. Authorization and Approval:

All transactions should require proper authorization and approval before being executed. This includes purchase orders, invoices, and payments.

iii. Access Controls:

Access to sensitive systems, data, and physical assets should be restricted and monitored. This includes passwords, key cards, and other forms of authentication.

  1. Physical Security:

The organization should have appropriate physical security measures to protect assets from theft or damage. This includes locks, alarms, and security cameras.

  1. Training and Awareness:

All employees should be trained on fraud prevention and detection and aware of Staffing Future’s policies and procedures for reporting suspected fraudulent activities.

Fraud Detection:

  1. Monitoring mechanisms should be established to detect potential fraudulent activities.
  2. Monitoring should be conducted using various methods, such as data analysis, reviews of financial records, and employee reporting mechanisms.
  3. Monitoring should be conducted regularly and documented.
  4. Data Analysis:

Data analysis should be used to identify unusual or suspicious patterns of activity. This includes analyzing financial data, transaction logs, and employee behavior.

  1. Financial Record Review:

Financial records should be reviewed regularly to ensure all transactions are legitimate and properly recorded.

iii. Employee Reporting Mechanisms:

Employees should be encouraged to report suspected fraudulent activities through a dedicated reporting mechanism, such as a hotline or email address.

Fraud Response:

  1. Appropriate procedures should be established to respond to suspected or confirmed fraudulent activities.
  2. Procedures should include reporting mechanisms, investigation, and corrective action procedures.
  3. All fraud incidents should be documented and reported to the appropriate authorities as required.
  4. Reporting Mechanisms:

A reporting mechanism should be established for employees to report suspected fraud, such as a hotline or email address.

  1. Investigation Procedures:

Investigations should be conducted by trained personnel in a timely and thorough manner. This includes collecting evidence, interviewing witnesses, and documenting findings.

iii. Corrective Action Procedures:

Appropriate corrective action should be taken in response