Training Employees to Identify Potential Fraud and How to Encourage Them to Come Forward

Abstract

Information security and privacy training and awareness are challenges in every organization. Most people do not like to participate in training. Ensuring that employees understand their responsibilities for protecting information is vital to an organization's success and is required by law for many industries and jurisdictions. Helping employees understand how to identify and report fraud is especially important in today's business climate. A fraud awareness and training program must support an organization's business environment, be integrated within the information security program and policies, and meet applicable regulatory requirements. Personnel must be motivated to learn how to identify and report fraud by tangible and specific rewards and penalties to support an organization's fraud prevention efforts. Fraud prevention training must become part of the job appraisal process to build a truly effective fraud prevention education program. Corporate leaders must not only ensure compliance with regulatory issues but also effectively communicate fraud prevention policy and regulatory issues to the organization. Organizations cannot have a successful awareness and training program if personnel do not understand the impacts and consequences of noncompliance.