Report serious fraud and corruption

Fraud countermeasures

Implementing effective countermeasures to reduce the risk of fraud and corruption is the foundation of fraud control. Organisations are encouraged to put in place countermeasures that help minimise opportunities to commit fraud and maximise detection of fraud.

Fraud involves deceptive behaviour carried out by someone who is trying to hide their actions. Fraud risks can be managed by establishing practices and countermeasures to mitigate them or by designing specific fraud evaluation procedures.

An organisation’s mitigation practices will depend on its fraud risk tolerance and exposure to risks. No system of countermeasures can eliminate fraud, however, well designed and effective countermeasures can help to deter and detect fraudulent activity.

There are four countermeasure categories typically required for an effective counter fraud control plan. The categories are interlinked, and each countermeasure plays a significant role in managing fraud risks.

Capability, prevention, detection and response countermeasures

  • Guide expected behaviours and determine organisational culture around fraud, so employees know what to look out for and what to do should they suspect fraud

    Capability countermeasures

  • Put in place common and cost-effective countermeasures to limit fraud risks by reducing the likelihood of it occurring

    Prevention countermeasures

  • Identify when fraud has occurred, then disrupt it and reduce the impacts

    Detection countermeasures

  • Carry out investigation, prosecution, disciplinary and recovery activities to reduce or disrupt additional impacts if fraud has occurred

    Response countermeasures

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See an overview of fraud countermeasure categories typically required to implement an effective counter fraud control plan.

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