Protecting Corporate Executives From Fraud Course Work



Identity theft is on the increase. The target of identity theft is usually the high net worth individuals. Corporate executives are exposed to higher risk due to the value of their liquid assets. They need to be educated on the dangers of identity theft and the steps to take to mitigate future losses through this rampant form of fraud. Identity theft is also rampant within an organisation with workers collaborating with outsiders to defraud their bosses. The staff should be aware of the dangers and how to critically buffer the executives and the company as a whole fromidentity fraud. They should be able to report colleagues who are fraudulent and raise an alarm on being approached by a third party to defraud the company executives.

Protecting Corporate Executives of Fraudulent Acts against Them

This may be done through the employment of the following techniques such as educating the management about fraud and setting a specific ethical tone which involves the corporate executives. Employees can be trained on methods of identifying, controlling and preventing fraudulent acts especially the one targeting corporate executives. It also involves encouraging the executives to bring to light unethical behaviours in colleagues that may involve fraudulent issues. Through regular communication, investigations and strict corrective measures, the executive’s actions and commitment towards corporate ethics gains more credibility inside and outside the organisation. It thus becomes part of the organisation’s organisational culture (Cherry, 2004).
There needs to be an established fraud detection framework. By simply putting such frameworks in place in an organisation, perpetrators are discouraged from committing fraudulent activities. Regular auditing activities both internal and external could be specifically designed in order to detect upcoming fraudulent actions. Such forms valuable

tools in protecting corporate executives against fraudulent actions aimed at them.

A specific ethical tone should be set that involves the corporate executives. This involves setting a written code of conduct through which ethics and values will be reflected. The corporate executives must embrace such code of conduct to heart while subsequently demonstrating their commitment to them through their actions (Sussman, 2005). This continually enhances the ethical behaviours of the corporate executives ( Resembling other aspects of Organisational corporate culture, the expectations on ethical behaviour should be communicated, practised and supported vertically right from the executive.
There should be a regular fraud detection framework. The process of detecting fraudulent actions is not easy to carry out. This requires special skills and experience to be implanted in the staff in the organisation. They should be encouraged to get Certified Fraud Examiner Certification. The course equips subordinates with skilful arts uncovering against the top management.
Background checks should be conducted so that the company does not hire corporate executives with a history of unethical behaviours such as fraudulent activities. This prevents other top level management under the risk of such losses as caused by fraud. Background checks can be enhanced by enquiring about a candidate’s past especially from their past employers.
A confidential hotline may be operated round the clock especially by third-party fraud-detection professional. The hotline should be communicated through tools such as posters in lecture halls and break rooms, organisation’s intranet, newsletters. It is of essence to employ a mixture of media tools in order to reach more audience apart from the executives. Companies are encouraged to put in place a process through which employees
and top management can confidentially and anonymously submit fraud claims (Association of Certified Fraud Examiners, 2004).). The Association of Certified Fraud Examiners’ 2008 Report to the Nation recorded findings that organisations with fraud hotlines are able to reduce their losses by higher than 50% (Cherry, 2004).

Creating a Loss Prevention Education Workshop for Corporate Executives

Such a program should have several foundational elements. The standards and procedures set by the organization for fraudulent actions’ corrective measures should be strict and well-communicated to the workshop’s audience. The program’s instructors should involve competent personnel who are knowledgeable in matters concerning the prevention of losses caused by fraudulent actions. Personnel in the organization with high work ethics which comply with the program’s loss prevention techniques should be offered supervisory authority in such a program. The organization should implement in such a program system to monitor and evaluate the effectiveness of such a workshop on the employees’ ethics.

Evaluation Procedures of the Education Program

The organization needs to evaluate the workshop program so as to determine its effectiveness in preventing losses associated with fraudulent actions against the progress of the corporate executives. This may be done by establishing a monitoring system to which an internal auditing program by professional fraud detectors is attached. The evaluation should also involve a system of reporting misconducts that cause losses and the corrective actions taken by the organization.


Combating identity fraud is an exercise or process that requires the whole organisation to get involved, from the corporate executives to the subordinate staff. This will assist the organisation to be vigilant about what is happening in the marketplace and the preventive strategies. It will hardly be caught unawares.


Association of Certified Fraud Examiners (2004). 2004 Report to the Nation on Occupational Fraud and Abuse. Retrieved from:
Cherry, M. (2004). Whistling in the Dark? Corporate Fraud, Whistleblowers, and the Implications of the Sarbanes-Oxley Act for Employment Law. Washington law review, 79, 1028-1070.
Sussman, R (2005). Practicing White Collar Criminal Defense in the Post-Enron Era: Some Changes in the System. The Houston Lawyer, 43, 26-28.