Top Products

Red Flag Reporting Overview


Red Flag Reporting is a simple, yet highly effective program designed to educate and empower your employees with the tools to detect and report unethical behavior. We help organizations protect their employees, resources and reputation. Services are supervised by individuals with the appropriate credentials and experience.*

Why Does a Reporting Hotline Make Sense?
Download the whitepaper
 View the webinar overview

Financial Considerations

  1. 46% of frauds are found by someone speaking up. Speaking up is the #1 way fraud is detected, far more than anything else. The hotline facilitates and encourages such communication. Because it allows anonymity, it empowers those who may otherwise be too intimidated to speak up.
  2. The #1 way fraud is prevented is by establishing a strong and positive tone at the top. The hotline is a visible and frequent reminder of this positive tone. It is presented as working together for the common good.
  3. The average occurrence of fraud at an organization with a hotline is $100,000 and without a hotline is $250,000. Just one time of catching fraud early, and reducing the damages, potentially covers the cost of the hotline for decades… not to mention whatever it prevents.
  4. Beyond any financial loss, fraud losses are otherwise painful. They lower company morale, damage reputations and distract people from more productive work.


Employment Practices Considerations

  1. Employment-related claims are on the rise. It is estimated that three out of every five companies will be sued by an employee for a matter that occurred sometime between the pre-hiring process through the exit interview. The average court settlement for an employee-related claim is $40,000. The average verdict in an employee-related case is $140,000.
  2. Having a hotline in place allows for employers to address a situation early, rather than letting it continue and end in the courts. A hotline also eliminates the employee excuse that he/she had nowhere to turn.


Why is Red Flag Reporting a Compelling Provider?

Financial Considerations

  1. Most providers do not provide employee training as part of the set-up fee. We provide live on-site training from an experienced fraud examiner. A webinar is available for those unable to attend the on-site training.
  2. Our hotline allows web reporting and live, 24/7 phone reporting via a toll-free number. We also offer collateral material that helps keep the hotline top of mind, including wallet cards, posters and quarterly e-mails.
  3. Unlike most hotlines, our reports do not go straight from the operator to the client. Our reports first go to an experienced fraud examiner who provides a preliminary assessment of the matter when it is presented to your organization. This service is part of the fee, and it is not an additional billing.


Employment Practices Considerations

By putting this hotline in place, you will convey to your employees that your organization is committed to their safety and well being. As an employer, you will have comfort in that the hotline provides you with a safeguard that may identify employee concerns or complaints before they develop into a litigious situation.

Each report submitted will be reviewed by a certified Human Resources professional. After a brief review, the situation and recommendation for action will be reported to a predetermined individual at your organization.

Other Benefits

By using Red Flag Reporting, you may qualify for exclusive advantaged pricing on your Employee Theft and Employment Practices Liability policies.

For more information regarding advantage pricing on insurance, click here.

How Do I Keep This Program Top of Mind With My Employees?

Red Flag Reporting offers collateral material such as wallet cards, workplace posters and quarterly e-mails. Together, these tools help to identify and refresh your commitment to an ethical work environment.


For more information, contact our President Raymond H. Dunkle, CPA, CFF, CFE at: 877-676-6551 or Ray.Dunkle@RedFlagReporting.com.

Become an Affiliate

Become a Red Flag affiliate and start protecting your clients and their organizations, click here.

 

* Services related to financial claims supervised by CPA's who are also Certified in Financial Forensics and/or Certified Fraud Examiners. Services related to workplace environment claims are supervised by credentialed Human Resources professionals.