Detection countermeasures

Effective detection countermeasures

No system of countermeasures can completely eliminate the risk of fraud. Detection countermeasures can help to identify when fraud has occurred, then disrupt it and reduce any impacts. Effective approaches include the following countermeasures.

Activity reporting

Prepare summary reports on activities for clients, managers or responsible employees. For example, prepare a report on procurement and vendor payments or employee overtime payments.

Automatic data matching

Match data automatically with another source to obtain or verify details relevant to the request or claim. For example, match programme participants by sharing data files between organisations.

Avenues for reporting fraud

Put processes in place for employees or external parties to lodge tip-offs or provide protected disclosures. For example, provide a secure online form through an internal or external website.

Evidence and document capture and storage

Capture documents and other evidence to detect, analyse, investigate and disrupt fraudulent activity. For example, keep all procurement decisions and documentation on file.

Exception reporting

Establish exception reports to identify activities that are different from standard, normal or expected process and should be further investigated. Activities could include unusually high payments, large salary changes or payments that are repeatedly just below approval thresholds.

Fraud detection software

Use fraud detection software to automatically analyse data to detect any anomalies that may indicate fraud or corruption. For example, monitor for suspicious changes to client or provider bank accounts.

Internal audits or reviews

Conduct internal audits or reviews to evaluate and improve the effectiveness of risk management, control and governance processes. For example, carry out regular security audits of information and communications technology or unscheduled on-site visits to providers.

Quality assurance checks

Conduct quality assurance checks to confirm that processes are being followed correctly and to a high standard, and/or that goods received are what they are expected to be. For example, select random or targeted samples of products to check they are what they claim to be.

Verify information

Verify key information from requests or claims with an independent and credible source. For example, confirm professional qualifications with the education provider.

Other countermeasures

Alongside detection countermeasures, three other countermeasure categories are typically needed for an effective counter fraud control plan. The four categories are interlinked, and each plays a significant role in managing fraud risks.

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

Response countermeasures

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In-depth information on detection countermeasures, including examples of how the countermeasure can be implemented, related fraudster personas and suggested measurements to test countermeasure effectiveness.

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