We have had a lot of discussions about how we would go about detecting fraud within a financial information system, however we have not really touched on the subject of fraud prevention. There are many ways to prevent fraud from happening, but I think there is one preventive step that a lot of people forget to take. Most companies never mention to their employee’s that steps have been taken to prevent and detect fraudulent activities. Some companies might mention it once in a while or just to new hires during their orientation. This is not the way companies should approach fraud prevention. Companies need to make sure that their employee’s know that all transactions are being constantly monitored no matter how big or small they are. For example, a way that companies can bring this message across is to make sure that there are through checks and balances within the transaction process. If each transaction needs the approval or checks of multiple people across various departments then getting a fraudulent transaction through the system will be tougher and can be more easily caught.
Reference: http://www.corporatecomplianceinsights.com/7-steps-preventing-detecting-fraud/