<aside> 💡 To be used upon detection of a Fraud event

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1. Identify the fraud event: Identify the fraud event and gather all relevant information about the incident.

2. Determine the impact: Assess the impact of the fraud event on the recruitment company, including financial losses, damage to reputation, and loss of trust among clients and employees.

3. Identify contributing factors: Identify the factors that contributed to the fraud event, including weaknesses in internal controls, lack of oversight, and insufficient training and education for employees.

4. Analyse the root causes: Analyse the root causes of the fraud event, which may include:

   • Lack of segregation of duties: If one employee has too much control over financial transactions, it can create an opportunity for fraud.
   • Inadequate background checks: Failure to conduct thorough background checks on employees, may result in individuals with a history of fraud being hired.
   • Poor internal controls: Inadequate internal controls in place may make it easier for employees to commit fraud.
   • Lack of oversight: Failure to have proper oversight and monitoring of financial transactions, could result in missed signs of fraudulent activity.

   1. Develop recommendations: Based on the root causes identified, develop recommendations to prevent future fraud events. These may include:

      • Strengthening internal controls: Implementing stronger internal controls, such as segregation of duties and regular audits, to help prevent fraud.
      • Conducting thorough background checks: Ensuring that all employees undergo thorough background checks to reduce the risk of hiring individuals with a history of fraud.
      • Providing training and education: Providing training and education to employees on fraud prevention and detection can increase awareness and help prevent future incidents.
      • Increasing oversight: Increasing oversight and monitoring of financial transactions can help detect fraud early and prevent it from escalating.

   2. Implement recommendations: Implement the recommendations developed to prevent future fraud events and monitor their effectiveness over time.