Process Controls: 7 Steps to Help You With Fraud Prevention

div align="center">people are responsible for payment and reconciliation.
Fraud – it’s out of control. Each year,3. Use secure output-management systems to provide
U.S. companies lose more than $600 billion to fraud,controls and audits to help prevent item theft or
with counterfeiting and document fraud making upunauthorized use. The system should record every
more than two-thirds of that, according to theitem issued and identify the authorizing individual at
world’s largest fraud prevention. organization,issuance. Ideally, information from the issued
the Association of Certified Fraud Examiners.documents should be forwarded to downstream
Business documents, financial documents, birthauthentication systems.
certificates, identification cards, licenses, motor vehicle4. Use authentication devices. Positive Pay and
titles, prescriptions, college transcripts, tickets andimage-comparison services, as well as bar codes and
passes for events – any document of value isdata encryption solutions, help ensure that the
at risk. With law enforcement focused on violent crimeinformation matches up. Identity security or biometric
and homeland security, however, there are limitedsolutions such as fingerprint, retina, iris and face
government resources to address the problem ofrecognition, take secure documents to the next level.
fraud prevention. The challenge of reducing fraud and5. Establish limits & reconciliation systems. Establish
its associated losses falls primarily on the organizationlimits on check amounts being disbursed; require special
that owns the documents.approval for higher amounts. Compare purchase
If you’ve followed the advice of experts,orders to packing slips, and inventories to
you’ve integrated multiple security featuresdisbursements of printed statements. Secure stock for
into vital documents and standardized their design tochecks and other vital documents. Reconcile all
make them readily recognizable to those who use andtransfers.
accept them. However, it’s important to6. Know your people. Review permanent and
recognize that the physical features of yourtemporary hiring procedures to help assure
documents are only half of an effective fraudyou’re attracting reliable people you can trust
defense. It’s critical that you also establishto manage your vital business documents. Background
secure document management for controllingchecks are an important part of this process. Then
document issuance and handling.provide your staff with proper credentials that enable
Consider these steps for more secure documentyou to validate who they say they are.
management:7. Finally, choose reliable and well-known document
1. Securely store and audit important documents.management services. Thoroughly evaluate potential
Protect your documents from theft by securing stockvendors. Determine: Do they have secure facilities?
in locked rooms at all times, and by recording andAre their operators trained to follow security
auditing document control numbers. Limit access toprotocols? Do they have controls in place to prevent
materials at all stages: production, shipping, receiving,fraudulent orders? Do they have the expertise to
storage and use. Monitor your document productionanticipate new forms of attack and develop new
facility and audit regularly. Be sure incoming shipmentsdefenses? Do they understand the needs of your
of checks, prescription pads or other valuableorganization and the possible ways your documents
documents are not identified on the shipping labels ormight be compromised?
containers.Fraud is an ongoing challenge to meet, but if you follow
2. Separate financial responsibilities. In matters ofthese seven steps, you will be well on the way to
money, make sure at least two separate groups ofthorough fraud prevention.