Let’s talk about workplace fraud. It’s a risk that nearly every company in every industry faces. It’s also one of the costliest violations a business can face. From bribery and payroll fraud to embezzlement and data theft, fraud incidents can result in thousands of dollars in losses and fines. In fact, it’s

reported that employee theft alone costs companies roughly $80 billion every year. Here are some other alarming fraud-related statistics, according to Exploding Topics:

· 57% of fraud incidents are committed by company insiders or with the assistance of company insiders.

· 20% of data breaches occur at the hands of inside staff.

· 43% of employees admit to exaggerating how many hours they work.

· The average “dishonest employee” will cost a retail employer roughly $1500.

So, how can your business better protect itself from staff-initiated fraudulent activities? Explore the many benefits of the ethics hotline. And see how advantageous hotlines can be for mitigating risks associated with all types of workplace fraud.

1. Encourages Ongoing Reporting of Suspicious Activities

Tattling on a fellow employee isn’t popular. But when everyone on your team knows they can report suspected or witnessed fraud anonymously, they’ll be more apt to call out bad behavior when they see it.

2. Promotes a True Company Culture of Transparency

When you implement an ethics hotline, you send a message to your staff, vendors, and the public that you’re committed to ethical best practices. Its very existence demonstrates your dedication to building a company culture built on trust and ethical transparency.

3. Provides Opportunities for Early Detection and Intervention

You can’t have eyes on every aspect of your business all the time. But when you deputize everyone with the authority to report fraudulent activity, you can spot concerns immediately and take action.

4. Reduces Reporting Fear of Retaliation

Because an ethics hotline is confidential, employees are at ease reporting any fraudulent behavior. The EEOC cites this fear of retaliation as one of the number one reasons employees refuse to report concerns. It’s the ethics hotline that dispels these fears and re-opens those vital lines of communication.

5. Gives Companies Comprehensive Monitoring and Auditing

Ethics hotlines offer oversight mechanisms, like data and analytics, that can spotlight weak spots in your company practices. Timely reports can also point management in the right direction to mitigate problematic areas and close loopholes that may be more prone to fraudulent activity.

6. Reinforces Your Compliance Policies

Use your ethics hotline to support and reinforce your company’s existing ethics policies. From safety compliance to unapproved use of company resources, the hotline is the ideal channel for reporting any unethical behavior.

7. Provides an Ongoing Opportunity for Fraud Training and Awareness

As part of your hotline program, you can host ongoing staff training to inform teams about policies and violations. You can also use these sessions to remind employees about how to use the hotline and how it benefits them as much as it benefits the company.

8. Enhances Your Management Team’s Oversight Capabilities

An ethics hotline enhances management oversight in a big way, too. Hotlines provide actionable data, both historical and in real-time, and highlight areas susceptible to fraud. Your managers can jump in to implement methods to minimize weaknesses. In other words, an ethics hotline can help you catch thieves faster and prevent theft.

Don’t let your business fall prey to unwanted (and expensive) fraud. Update your policies, keep your employees up-to-date with anti-fraud training, and squeeze every benefit out of an ethics hotline to help. We can help guide your efforts and reduce your risks – contact us at Ethical Advocate today to learn how.