Practitioner fraud risk management

Whilst the unprecedented global crisis continues due to the COVID-19 pandemic, it remains important for all personal insolvency practitioners to continue to remain vigilant and ensure that their fraud risk management capabilities remain effective.

AFSA’s article in the June 2020 Personal Insolvency Regulator newsletter noted the main factors that increased the risk of fraud, which have been heightened as a result of the disruptions and uncertainty caused by the pandemic. The article also encouraged practitioners to review their systems and controls to both minimise the risk of fraud, as well as have processes in place to address any instances of identified fraud. As the economy emerges from the pandemic, it is also vital that practitioners continue to assess and refine their controls to ensure they remain effective in a changing and complex business environment. This includes maintaining appropriate controls to mitigate the risk of cyber-attacks.

PwC’s Global Economic Crime and Fraud Survey provides interesting insights from their Global Economic Crime and Fraud Survey and the need for Australian organisations to understand the key fraud risks, implement measures to minimise those risk and provides some optimal steps to respond to those risks. Their earlier publication on Fraud – A guide to its prevention, detection and investigation provides a broad overview of effective fraud prevention, detection and investigation techniques.

Please also ensure that any concerns about suspicious activity are reported to AFSA via the tip off form at afsa.gov.au