Fraud Fighting

Fighting Fraud: The Hard Road to Integrity

If you are a fraud investigator or examiner, understand this: fighting fraud is not a comfortable job. It demands stepping out from under the covers, getting your hands dirty, and walking a difficult path.

Fraud doesn’t discriminate.

It doesn’t care about your religion, tribe, politics, family ties, or the size of your business. It cuts across all sectors and institutions — from multinationals and government agencies to small businesses and startups.

Fraud rarely works alone. While it can stand on its own, it often partners with other vices: corruption, nepotism, tribalism, and embezzlement. Together, these form a toxic cocktail that weakens the core of organizations and economies.

Think of fraud as a virus.

But unlike STIs that are transmitted physically, fraud is often passed through words, ideas, and influence — a Verbally Transmitted Infection (VTI). It spreads through conversations like “I know someone who knows someone,” creating invisible links of collusion.

Fraud may seem cheap to the one committing it — a shortcut to wealth. But to the organization or business on the receiving end, it is extremely costly, often threatening operations, reputations, and survival.

Fraud is the misappropriation of resources for personal gain. And when it becomes systemic, it forms a chain. In that chain, collusion is the glue — a network of individuals working together to cover tracks. Where collusion fails, corruption steps in to open doors. If that doesn’t work, tribalism or nepotism is used to connect the missing links.

To fully grasp how fraud operates, one must understand the associated vices:

Corruption – the abuse of power or position for personal benefit.

Embezzlement – the mismanagement or theft of resources.

Nepotism – giving favors to friends or family regardless of merit.

Tribalism – placing loyalty to tribe or region above integrity or competence.

Overriding – when senior officials coerce juniors into wrongdoing, not through partnership, but by force or fear.

Prevention and Detection

When we say fraud is a Verbally Transmitted Infection, it means the first place to look is not always in the files, but in the conversations, networks, and behaviors. Prevention starts before fraud happens.

To prevent fraud, organizations must:Train employees on fraud awareness

Promote whistleblowing and protect whistleblowers

Monitor communications and be alert to red flags

Foster a culture of transparency

Detection involves tracking lifestyle changes, examining communications, and probing deeper into red flags. Sometimes, the signs are in plain sight — like a person living far beyond their means, sustained by income with no clear or legal source. This could be money laundering — often referred to as Wash Wash — and it’s a major red flag.

Protection and Deterrence

Protection is like building a strong wall — through policies, internal controls, regular audits, and a well-enforced code of ethics.

Deterrence comes from consequences. Penalties should be strict enough to discourage misconduct, but not so harsh that they scare away qualified professionals. A well-balanced approach sends a clear message: fraud will not be tolerated, but justice will be fair.

In Summary:

Fraud is more than just a financial crime — it’s a systemic disease that infects institutions from within. But with vigilance, integrity, and strong systems, it can be prevented, detected, and defeated. The fight may be hard, but it is necessary.