Case studies of fraud in the hospitality industry
The most effective approach to developing effective anti-fraud controls starts with understanding how fraudulent schemes were uncovered, and then measuring how damage caused by fraud was reduced when a specific control was instituted.
Regardless of the size of victimized organization, a tip proves to be the most common method of detection — 36 percent of the time for small entities and nearly 47 percent of the time for those larger organizations. Management review is also shown to be critically important for all companies in detecting fraud.
While all controls lead to reduced loss, formal management reviews, employee support programs and hotlines are associated with the largest reductions in financial losses; fraud training also has proven to be highly effective.
No organization or department is immune to fraud, but all members have roles to play and an inherent responsibility to understand what constitutes fraud as well as how to prevent and detect it.