Relations · HR glossary

Fraud Prevention

Fraud prevention uses controls and awareness to reduce deliberate deception for improper gain. In HR and payroll, it may address fictitious employees, false claims or unauthorised changes.

Example

An employer separates payroll preparation from payment approval and reviews changes to bank details to reduce the opportunity for fraudulent diversion.

What to keep in mind

Controls should be proportionate and regularly checked. A discrepancy is not automatically fraud, so investigate evidence fairly and distinguish intentional deception from error or an unclear process.

Further reading

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