According to CIFAS, what is the most common method of detecting staff fraud?

Internal controls and monitoring represent the most effective approach to detecting staff fraud, as endorsed by CIFAS. This method encompasses a range of systematic procedures and safeguards that organizations implement to deter fraudulent activities and identify any irregularities quickly. By establishing robust internal controls—like segregation of duties, regular reconciliations, and access restrictions—companies can create an environment where fraudulent actions are less likely to occur and can be promptly detected if they do.

Monitoring, including ongoing reviews of employee activities, transaction anomalies, and continuous assessment of compliance with policies and procedures, enables organizations to spot unusual patterns or behaviors that could indicate fraud. These practices create a comprehensive framework for fraud detection, making it challenging for dishonest actions to go unnoticed.

While random audits, whistleblower reports, and external investigations also play significant roles in fraud detection, they tend to react to incidents rather than proactively prevent them. Random audits may miss key areas if not strategically focused, whistleblower reports rely on individuals stepping forward with possible information, and external investigations are often resource-intensive and occur after fraud has already taken place. Thus, internal controls and monitoring serve as the foundation for a proactive and preventative strategy against fraud within organizations.