William Vaughan Company
March 2004 ‘Expert’ Article
Toledo Business Journal

(Headline)
Hotline and web site offer anonymity when reporting fraud

As much as 6 percent of annual corporate revenues could be lost as a result of occupational fraud and abuse, reports the Association of Certified Fraud Examiners, a worldwide professional organization whose 28,000 members are dedicated to fighting fraud. That figure translates to approximately $600 billion when applied to the U.S. Gross Domestic Product (GDP) – or about $4,500 per employee. The Association’s 2002 Report to the Nation also stated that small businesses are the most vulnerable to occupational fraud and abuse. The average scheme in a small business causes $127,500 in losses, while the average scheme in the largest companies costs $97,000.

According to Maumee-based William Vaughan Company, occupational fraud can be detected and even prevented through anonymous tips from employees. “The biggest hurdle is overcoming employees’ concern that their bosses will retaliate against them,” says Gregory Arndt, CPA and one of William Vaughan’s two certified fraud examiners. “While internal and external audits and background checks help to reduce the occurrence of fraud, organizations that offer hotlines and other anonymous methods for reporting suspicion can cut fraud losses by as much as 50 percent,” he adds.

William Vaughan Company has responded to this need with the development of a toll-free fraud hotline (1.888.725.1401) and web site (www.endfraudnow.com) that provide an anonymous way for an organization’s employees to report internal theft, fraud and other activities that would cause a loss to the company or subject the organization to legal exposure.

“Our hotline and web site enhance the organization’s internal reporting process, providing another option for employees who might feel uncomfortable reporting a suspected fraud to their supervisors,” says Arndt.

William Vaughan also offers communication vehicles to make employees aware that their employer encourages the use of the fraud hotline and web site:

William Vaughan Company’s certified fraud examiners also are available to consult with the organization’s employees by emphasizing the importance of reporting fraud and abuse and answering employee questions relating to the hotline and web site.

“One of the most effective ways for an employer to prevent fraud within their organization is to increase their employees’ perception of detection,” says Arndt.  “By utilizing our fraud hotline and web site, the chance for detection becomes very real to employees. Employers can sleep better at night.” 

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