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Q&A Forum

Let's talk about fraud, detection and prevention

How many of us have a policy about fraud, outlining prevention and discussing detection?

Here's an example of a policy statement that prevents or at least seems to prevent fraud:

"Accepting or seeking anything of material value from contractors, vendors, or persons providing services/materials to the Company. Exception: Gifts less than $50 in value."

Detection by others (besides self reporting) would be built into a whistleblower policy.

Do you have something like this?


(Independent Consultant) |

Most companies that I've worked with had a gift policy which included similar language (often also indicating that the giving or receiving of gifts should be around some occasion - wedding, birth of child, birthday, etc) and that the value of cumulative gifts also be reported (i.e., getting a $40 gift card from a supplier every week for a year would obviously be a violation of said policy using a substance over form argument).

These policies are also written to comply with FCPA (and so would indicate a zero gift policy to elected officials, etc).

Taosong Ai
Title: Compliance Manager
Company: American Sugar Refining, Inc.
(Compliance Manager, American Sugar Refining, Inc.) |

the policy of my company is worded as " we may only offer business courtesies that are lawful, appropriate and in accordance with reasonable business customs, unsolicited, not in the form of cash or a cash equivalent". We prohibit giving anything in the hopes of influencing someone's decision (including grease payments). There is no dollar amount attached.

Topic Expert
Christie Jahn
Title: CFO
Company: Prime Investments & Development
(CFO, Prime Investments & Development) |

The telecommunications industry was hit with fraud pretty heavily this year and as a result we put quite a few new measures into practice to help. We saw immediate benefits from it. I think it's probably one of those areas we don't spend enough time on.


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