Fraud Risks and Prevention Indicators

Risks

• Unauthorised disclosure of sensitive information, whether motivated by personal gain or malice

Causes

• Disgruntled employees
• Information not adequately secured
• Inadequate building security
• No policy governing disclosure
• No classification of information concerning suppliers or contractors
• Pressure from suppliers, contractors or competitors to disclose information
• Employees with prolonged dealings with clients who may seek to corrupt or 'capture' the employees
• Misunderstanding of Freedom of Information obligations
• Lack of computer security

Prevention Measures

• Sensitive material should be identified by managers and classified
• Adequate physical security maintained in respect of sensitive information
• Managers to initiate specific controls/guidelines in sensitive areas and ensure staff compliance:
  - limiting access to confidential information
  - restricting contact to authorised officers
• Managers should ensure that staff in sensitive areas attend fraud awareness training and are made aware of the special procedures in their areas of responsibility
• Sound computer security
• Adequate building security