Fraud Hotlines: A Key Component Of Corporate Whistleblower Programs

Promotion Strategies To Make Your Products Known
Some reasons why promotion strategies work.

Large companies and organisations are far from naive. They are well aware of the fact that frauds of all types can be going on in their company, and can be covered up for a long time. They also know that they will always invariably be uncovered and the proponents of the fraud be brought to justice and even sent to prison.

What these companies can never be totally sure of is whether they can return the money or the stock that has been stolen from them. In many cases, difficult though it may be to believe, companies have been forced into insolvency due to theft or misuse of their funds. A classic example of where an informant in the right place at the right time might have saved the total loss of a company's assets and disgrace is the famous story of the U.K's. longest established Merchant Bank, Barings Bank's Singapore Branch: A rogue trader began to chase losses on money futures, and drove the bank into liquidation with losses of one billion pounds. A lot of money that had could have been saved with one phone call.

This is an example of a pretty extreme case; however every day similar scenarios are being played out in companies all over the world. Management have long ago realized that this a symptom of the materialistic times that we live in. People, who have sacrificed their moral standards for a fast financial killing, have realized that the trick is not to get caught, and manage to cover their tracks very successfully. Systems of checks and balances are in place, however, at higher management levels it is very difficult to batten down the fraud hatches completely. This is why the use of a fraud hotline, easily accessible and entirely confidential has become a major weapon in management's battle to reduce the damages that fraud or mismanagement can cause to a company's profit margins and weaken their financial position considerably.

They realize that middle management and co-workers can pickup on cases, not only of actual theft, but also concealing of costly mistakes that can be equally damaging.

This is the reason why more and more companies have established an anonymous fraud hotline as part of their whistleblower protection program.