Develop a fraud strategy statement
A fraud strategy statement
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.
In addition, a fraud strategy statement should define fraud as 'dishonestly obtaining a benefit, or causing a loss, by deception or other means' as outlined in the Commonwealth Fraud Control Framework.
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 your 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
- An outline of your entity’s position on fraud.
- Your 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 your entity will deal with suspected fraud that outlines:
- how suspected fraud will be managed
- investigation and referral processes
- how suspected fraud will be publicly reported
- the consequences of someone committing fraud.
- A statement of employees' and contractors' responsibilities in preventing and reporting fraud.
- Where to find further information on fraud.