Fraud Risk Management Training for Organizations

Section 1: Introduction to Fraud Risk Management

This opening module defines fraud from a business risk and compliance perspective:

• What is fraud? Definitions, intent, and examples
• The fraud triangle: pressure, opportunity, and rationalization
• Why fraud persists even in “well-run” organizations
• The cost of fraud: financial losses, regulatory action, reputational damage
• Organizational responsibility vs. individual responsibility

Learners understand that fraud isn't just “big crime” — it can include false claims, misuse of assets, unauthorized expense claims, or conflicts of interest.

Section 2: Internal and External Fraud

This module explores the different types of fraud and how they impact the organization: Internal (occupational) fraud:

• Payroll manipulation and ghost employees
• Falsified expense reports
• Inventory theft
• Conflict of interest in vendor relationships
• Data manipulation or falsifying records External fraud:
• Phishing and business email compromise
• Vendor fraud or false invoicing
• Customer identity fraud or chargebacks
• Fake charities, investment scams, social engineering

Through examples and scenarios, learners see how internal and external fraud can overlap — and why layered controls are essential.

Section 3: Prevention, Detection and Reporting

A core section that translates awareness into action: Fraud Prevention

• Segregation of duties
• Approval workflows
• Regular audits and reconciliations
• Employee background checks
• Clear anti-fraud policies and training Fraud Detection
• Red flags: behavioral, transactional, or system-based
• Monitoring tools and exception reporting
• Role of whistleblowers and anonymous tips
• Case examples: how small anomalies revealed large frauds Fraud Reporting
• Internal reporting mechanisms: whom to approach, what to document
• Protecting whistleblowers and avoiding retaliation
• Confidentiality, escalation, and legal considerations
• What not to do: confronting suspects, leaking information, ignoring red flags

Interactive decision-making exercises help employees practice ethical choices under pressure and uncertainty.

Section 4: Summary and Assessment

The final module reinforces:

• Why every employee has a role in fraud prevention
• How organizational culture reduces fraud risk
• The importance of early action and clear documentation

Learners take a short quiz to assess their understanding of fraud concepts, red flags, and the right course of action in typical scenarios. Completion certificates are generated for audit records.