What does fraud prevention do: responsibility and consequences?

Do you know what fraud prevention means in a company? Surely, your answer would have been immediately: prevent fraud, of course!

Yes, it may seem like a redundant question, but what we want to ask is if you know how this prevention is carried out and why it is so important to avoid its consequences, such as the losses they cause, the tax penalties and the loss of external reliability.

According to research carried out in Latin American countries by the American research and consulting firm Kroll, more than 70% of companies have already experienced an episode of fraud in the last year, a terrifying number, right?

The main reason, also raised in this report, is the misappropriation of the company’s resources. This means that failures in monitoring and transparency of internal processes allow fraud to occur, generating huge losses.

For exactly this reason, knowing what fraud prevention does is so important to understanding the scenario and protecting your company from these situations.

We will better understand how this strategy works, its importance and analyze some tips so that you do not put the stability of your company at risk

What is considered fraud within a company?

Fraudulent actions are considered all processes that involve:

  • Misappropriation of company resources, whether they be products, parts, supplies, or financial resources.
  • Over-billing of notes and orders.
  • Changes in values ​​and information on invoices.
  • Deviations
  • Parallel agreements or those that do not serve the interests of the company.

What are the most frequent scams?

There are numerous types of fraud that can vary depending on their nature and the niche in which the company is located. For example, in the financial and technological arena, it is common for fraud to be linked to data leakage, cloning and manipulation of information.

In companies in the logistics sector, the most common frauds refer to laundering or embezzlement of money and goods. As we mentioned in the introduction, the latter is the most frequent.

We say that these actions are based on 3 pillars:

  • Rational
  • motivational
  • Chance

The reason and motivation are present in the one who commits the fraud, the opportunity is already provided by the company. Therefore, it is up to you as a manager to be able to develop strategies to minimize the opportunities and the possibility of fraud in your company.

So what can you do to combat and avoid fraud scenarios?

First: you will not be able to fully protect your company from conscious and irregular acts. But you can and should find methods to minimize the risk of fraud.

The first, and always the best solution, is to create transparent processes. However, we know that the bigger a company, the more difficult it is to put this into practice. Therefore, our recommendation is to invest in ERP systems, internal and external audits.

And, of course, automate processes and have a fraud prevention team.

What does fraud prevention do?

More than knowing what the most common irregular processes are, we need to understand what fraud prevention does and how we can implement an efficient program.

Fraud prevention is a set of security measures to avoid a scenario that allows fraud to take place. These measures attack on 3 fronts, which are:

  • Training and education

Ethics, values ​​and norms are applicable throughout society, at least as far as the meaning of fraud is concerned, right? But to avoid the argument from ignorance, it is interesting that all the rules that guide the company are passed on to all employees. Ideally, they should also be documented and sent to the new team member.

This means that the rules and regulations must be public and general knowledge.

  • Establishment of penalties

To avoid acts of fraud, it is important to underline how each action of this nature will be treated in the company. These determinations can include just cause terminations, fines, and even lawsuits. Depending, of course, on the level of impact caused, the definition of the position held and the responsibility of the agent or agents who have carried out the act.

This is one of the most complex phases in a fraud prevention plan. After all, all data, from all sectors, needs to be continuously monitored. On the other hand, the integration of industry sectors, cloud storage and process automation greatly facilitate the identification and detection of bottlenecks, weaknesses and fraud.

Internal and external audits, carried out frequently, reduce the risk of fraud and facilitate the monitoring of the areas and functions most susceptible to this type of event. External audits are also very useful to ensure that managers, partners and staff who perform fraud prevention internally in your company, are also monitored.

Another position that supports fraud prevention is corporate governance, a great ally in terms of monitoring, transparency and corporate responsibility.

It is important to note that the plan that defines what to do to prevent fraud in your company can be formulated by a manager specialized in the area, that is, you can create a specific sector for this activity or establish a specific group with managers from different areas.

And, of course, external audits should be made up of teams with no internal interests and acting impartially.

As you may have noticed, this set of measures based on the standardization of public regulations, sanctions and actions to monitor all processes are the main responsibilities for fraud prevention.

Here are some tips to help you with these actions!

Additional tips to protect your business

  • Be careful when hiring new professionals

Hiring professionals is always a demanding process, but this advice is especially important for companies dealing with financial data. Hiring professionals who handle confidential information is always a risk.

Therefore, it is important to do a background check, the applicant’s previous work, and conduct in-depth evaluations. This is essential to ratify the fraud prevention strategy.

  • Invest in trusted partner companies and technologies

It is natural that some processes and stages are outsourced, in some cases it is even the best thing to do. When we hire a new provider of technical assistance, a logistics intelligence platform or software, we need to analyze if the company is solid in the market, if it has a history of reliability and, above all, the necessary coverage for the protection that your company requires. , Like us at Maplink, for example!

We are the largest geolocation technology company in Latin America, with 20 years of experience in the field! And more than that, our purpose is to build a union with your IT or development team to create a robust solution, using the best technology to optimize your company’s operations, guaranteeing strategic information and reducing operating costs.

In addition, of course, strengthen the plans for the prevention of fraud in your company with the best strategies.

Do you want to know a little more about our features and how to optimize your world through data intelligence, location and maps?

Your IT team, backed by the powerful set of Google Maps APIs, can transform the way your company moves the market, solving complex problems and simplifying your operation in an efficient and agile way.


Maplink, offers our IT and development team at your disposal. With 20 years of experience, we are the largest geolocation technology company in Latin America!

We develop solutions that allow you to use geolocation intelligence to improve the integration between online and offline channels, through the integration of your system with the Google Maps APIs. But what are the benefits of this in practice?

  • Greater agility and effective communication between the customer and the company, ensuring a much more positive shopping experience for the consumer.
  • More security and agility in the workflow, since the system begins to feed automatically and in real time.
  • Cost reduction by automating activities, eliminating the use of paper and optimizing travel by grouping geographically close jobs.
  • Access to updated data, which facilitates the monitoring of metrics and indicators that guarantee customer satisfaction.
  • Improved profitability, due to increased team productivity.

We support companies that are protagonists and references in the markets in which they operate, such as: Nestle, Danone, Mastellone, Musimundo, Colun, Brinks, BRF and JBS. Schedule a conversation with one of our specialists right now.

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