Top 4 Internal Controls That Reduce Fraud Losses

Proactive internal controls are crucial in mitigating fraud losses within organizations. According to the "Occupational Fraud 2024: A Report to the Nations," implementing effective controls can significantly reduce both the financial impact and duration of fraudulent activities. The report identifies four key anti-fraud controls that are particularly effective: surprise audits, financial statement audits, hotlines, and proactive data analysis. Organizations that employed these controls saw a reduction of 50% or more in fraud losses and duration. Surprise and financial statement audits, along with proactive data analysis, directly enhance fraud detection capabilities, while hotlines contribute to a robust anti-fraud culture by increasing the perceived risk of detection.