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QUESTION 
Fraud strategies
 
Just considering the three prerequisites of fraud, what immediate control strategies can you suggest for 
preventing fraud? 
ANSWER 
(a) 
Don't employ people with predispositions to 
dishonesty
, if possible: undertake legitimate and 
appropriate background and CV checks when carrying out recruitment and selection. (The more 
opportunity for fraud there is in the job, the more carefully dishonesty should be screened.) 
(b) Reduce 
motivations 
for fraud. This is highly subjective, but the organisation should give attention 
to such matters as ensuring equity in pay and rewards; monitoring employees for signs of 
financial difficulty and its possible causes (eg gambling addiction) and offering counselling and 
support where required; providing generally good and equitable working terms and conditions; 
and establishing clear rules and strong sanctions for fraudulent behaviour. 
(c) Reduce 
opportunities 
for fraud. This is the function of a range of internal checks and controls, 
discussed in Section 4 of this chapter: separating duties so no one person has sole control over a 
system; requiring authorisations for expense/timesheets, cheques, and so on; using data security 
measures such as passwords; security checks; identification on office equipment to deter theft; 
and so on. 
 
BPP Tutor Toolkit Copy

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CHAPTER 10
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IDENTIFYING AND PREVENTING FRAUD 
 
273 
2.2 Assessing the risk of fraud 
Signs of high fraud risk include indications of 
lack of integrity
, 
excessive pressures
, 
poor control 
systems
, 
unusual transactions
and