No one wants to be misled especially by the people we trust or hold high expectations like in the case of BitRush where the former CEO Werner Boehm was accused of betraying his friends as well as shareholders by embezzling their funds. Fraud basically is damaging to the image of the manager and the company in general.
What is fraud?
Fraud is a case where an individual deliberately uses deceptive means in order to secure unlawful gains.A more complete definition of fraud entails a complete misrepresentation of material facts for the purpose of gaining unfair advantage. Some of the key elements of fraud include; false representation and doctored documentation. It is almost similar to robbery only that fraud is perceived as being victimless crime. In most of the scenarios, fraud goes undetected and the victim never discovers that they have been defrauded.
Who commits fraud?
Anyone can commit fraud and anyone can be a victim. It is very hard to notice a fraudster at a glance since they look just like any other ordinary individual. They don’t look like the jailed criminals you see on TV, they are just the normal educated individuals we work with, have cocktails with or even went to school with.Most of the fraud perpetrators do not have prior criminal records and are very educated with high self-esteem. For instance, Werner Boehm who perfected the art of crypto fraud at BitRush. Boehm not only embezzled the company’s funds but also stole from his friends as well as misled the company for more info.
Fraud control strategy
Fraud control strategy refers to the key elements that the organization puts in place to identify, investigate, manage, prevent and deal with cases of fraud in its own circumstances. As much as the strategy of approaching fraud in an organization depends upon its size, diversity, geographical spread as well as the industry it operates, there are a few key elements that need to be consider. Some of these key elements include fraud awareness program where the organization educates the staff and stakeholders on the forms of corruption and how it can be mitigated. Has the company established a reporting process for fraud offences as well as risk assessment? Other elements include whistle blowing as well as pre-employment screening.
In summary, it is very early to detect fraud especially in a very big company like BitRush where the senior executive is involved. Nonetheless, you can install proper fraud awareness program to ensure that the company is fraud proof.