I want to develop a fraud strategy statement
What a fraud strategy statement is
A fraud strategy statement helps people understand what fraud is, your entity’s views about fraud and what staff and contractors should do if they suspect fraud. It can be part of your entity’s fraud control plan.
Why you need a fraud strategy statement
The Fraud Rule requires Commonwealth entities to make sure their staff are aware of what constitutes fraud. Access to a detailed fraud strategy statement can help you:
- easily capture the entity’s approach to fraud
- raise awareness of fraud
- foster an ethical culture
- promote a culture that makes all staff and contractors responsible for preventing and detecting fraud
- effectively prevent fraud by having information and processes in place to deal with fraud.
What a fraud strategy statement contains
- A statement of what the entity defines as fraud.
- An outline of the entity’s position on fraud.
- The entity’s position on the level of fraud risk it will accept. This is also referred to as an entity’s tolerance to fraud risk.
- A statement on how the entity will deal with fraud that outlines:
- how fraud will be investigated
- the consequences of someone committing fraud
- when fraud will be dealt with internally
- when fraud will be referred to police for criminal investigation and prosecution.
- A statement of employees' and contractors' responsibilities in preventing and reporting fraud.
- An outline of what happens if someone commits fraud against the entity.
- A guarantee that reports of fraud will be investigated and will remain confidential.
- Information on how reports and fraud incidents are managed.
- Information on how to get further information on fraud.