According to the 2010 Association of Certified Fraud Examiners
Report to the Nations on Occupational Fraud and Abuse, hotlines
have once again proved to be an effective tactic for fighting
fraud.

The Report to the Nations confirms that, consistent with
previous studies, tips were the leading method by which
frauds were detected. The Report to the Nations also found:

  • 67 percent of anonymous tips were received through
    hotlines

  • Where a hotline was in place, fraud schemes were
    detected seven months sooner, on average

  • Median loss was reduced by 59 percent in organizations
    where an ethics hotline was present
Fraud facts & resources

Resources -- Learn More About Fraud:
Jeffrey B. Kramer, CPA
Fraud Facts & Resources
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NEWS -- On August 21, 2012, the Securities and Exchange Commission issued its first award under its new whistleblower program. The anonymous whistleblower will
receive nearly $50,000, representing the statutory maximum of 30% of the amount collected in the SEC enforcement action. The SEC press release provided virtually
no information concerning the whitleblower or the enforcement action in a conscious effort to protect the whistleblower's anonymity. The decision to pay the maximum
award permitted by law and to scrupulously protect the whistleblower's anonymity appear calculated to demonstrate that the SEC intends to be aggressive in
encouraging potential whistleblowers to make use of the new bounty program. In this environment, to the extent that they not already done so, companies should
assess and, if necessary, strengthen internal compliance programs, evaluate the effectiveness of internal reporting systems and formally prepare to respond to
whistleblower complaints.