--- title: "Fraud Awareness Training: 3 Proven Ways to Close the Gaps" date: 2024-07-15 author: "Eric Mann" featured_image: "https://www.redflagreporting.com/wp-content/uploads/fraud-awareness-training.webp" categories: - name: "Financial" url: "/category/financial.md" --- # Fraud Awareness Training: 3 Proven Ways to Close the Gaps # ![Employees taking part in an interactive fraud awareness training session reviewing a red flag scenario](https://www.redflagreporting.com/wp-content/uploads/fraud-awareness-training-512x368.webp) # Fraud Awareness Training: 3 Proven Ways to Close the Gaps Fraud awareness training is one of the most widely used anti-fraud controls, yet many programs fall short of their goals. According to [Occupational Fraud 2024: A Report to the Nations](https://www.acfe.com/fraud-resources/report-to-the-nations), 63% of organizations provide fraud awareness training to their staff. That said, many organizations develop training programs that lack their desired effectiveness. The Fraud Magazine article, “Filling In the Fraud Awareness Training Gaps”, by Sophia Carlton, CFE, offers practical advice for creating a robust and effective fraud awareness training program. In the following, we will discuss key takeaways. ## What’s missing from fraud awareness training? Fraud awareness training is often provided as a one-size-fits-all presentation to all employees. While it is important for all employees to receive the same basic information, fraud prevention training should include role specific and interactive components. Furthermore, organizations that fail to periodically review their training materials often end up providing outdated information. Think about how quickly new technology develops. Fraudsters are constantly adjusting their practices to skirt new securities and to take advantage of emerging technologies. Organizations must provide the latest information to employees if they want to effectively prevent fraud. Fraud awareness training that is reviewed and refreshed regularly helps employees keep pace with these evolving schemes. Finally, customer outreach and training is an often forgotten element to a robust fraud prevention program. Teaching customers how to protect themselves from fraud helps to build trust and loyalty while also preventing fraudsters from taking advantage of your company’s legitimate business practices. ## Takeaway 1: Awareness training is for everyone! With the above said, the first important takeaway from the article is that fraud awareness and prevention training is for all stakeholders. All employees should receive both broad and role-specific training so that they can detect and prevent fraud. Role specific training further ensures that anti-fraud procedures are implemented across all business operations. As discussed above, customers also play an important role in protecting themselves and your organization from fraud. Educational materials intended for customers should be easily accessible and engaging. The article states, “Generally, customers aren’t fraud or risk management experts. Messaging should explain fraud risks in simple, clear, and engaging language and formats.” ## Takeaway 2: Take time to assess your awareness training program and develop new strategies Before diving into new strategies, it is important to measure the effectiveness of your current awareness training and prevention practices. Consider surveying employees and customers to gauge their current understanding of fraud prevention and their perception of the training that your organization provides. Asking employees and customers how they feel about the frequency of training is also useful. Too little training is likely to result in low application of skills, while too much training will likely result in frustration and reduced attention. Use this information to create a program that is interesting, engaging, and informative. The ACFE’s [Fraud Awareness Training Benchmarking Report](https://www.acfe.com/fraud-resources/fraud-awareness-training-benchmarking-report) can also help you compare your program with those of peer organizations. ## Takeaway 3: Make fraud awareness training relevant and interactive As mentioned above, awareness and prevention training often lacks role-specific information and opportunities to practice what is taught. This makes it difficult for stakeholders to apply fraud prevention strategies when real situations arise. Simulations are excellent resources for trainees to practice skills prior to an actual threat. The article recommends leveraging advanced technology such as artificial intelligence and virtual reality to simulate real-world scenarios. Interactive awareness training builds the confidence employees need to act when a real threat appears. ## Final Note: Pair Fraud Awareness Training with a Fraud Hotline Year after year, the Association of Certified Fraud Examiners (ACFE) continues to identify tips as the most common method of fraud detection in organizations. High quality anti-fraud training must include instruction on how to report suspected fraud. [Hotlines](https://www.redflagreporting.com/glossary/fraud-hotline/) such as [Red Flag Reporting](https://www.redflagreporting.com/services/) provide stakeholders with a safe, secure, and easy to use method for reporting fraud and other forms of unethical behavior. Combining robust training with clear channels of communication is a game changer in preventing fraud and other forms of unethical behavior in the workplace. ## Strengthen Your Fraud Awareness Training with a Trusted Reporting Channel Fraud awareness training teaches employees what to look for; a hotline gives them a safe place to speak up. Red Flag Reporting offers secure, multilingual reporting by phone and online, 24/7, with the option to remain anonymous and continue two-way communication. Every report is delivered promptly to your designated contacts, and there are no administrator license fees. [Contact us](https://www.redflagreporting.com/contact-us/) to learn how Red Flag Reporting can support your fraud awareness training and help your people report concerns with confidence. ## Frequently Asked Questions About Fraud Awareness Training ### What is fraud awareness training? Fraud awareness training educates employees, managers, and other stakeholders on how to recognize the red flags of fraud, understand the organization’s anti-fraud policies, and report suspected wrongdoing through the proper channels. ### How often should organizations provide fraud awareness training? There is no single required schedule. Many organizations provide this training during onboarding and annually thereafter, with short refreshers when new schemes emerge. Surveying employees can help you find a frequency that avoids both too little and too much training. ### Should fraud awareness training be the same for every employee? No. Every employee should receive core training, but role-specific content is essential. Employees in accounts payable, purchasing, payroll, and customer service, for example, face different fraud risks and need training tailored to their responsibilities. ### Does fraud awareness training reduce fraud losses? Yes. The ACFE’s Report to the Nations has consistently found that organizations providing fraud awareness training experience lower median fraud losses and detect fraud sooner than organizations that do not. ### Why should fraud awareness training explain how to report fraud? Tips are the most common way fraud is detected, accounting for 43% of cases in the ACFE’s 2026 Report to the Nations, and more than half of those tips came from employees. Training should explain how to use your hotline, that reports can be made anonymously, and that retaliation is not tolerated.