Fraud doesn’t knock. It walks right in through your open doors, process gaps, ignored red flags, and blind trust. And when it hits, it hits hard. Reputations ruined. Careers ended. Cash gone. Before you become the next cautionary tale, here are IFIS’s five practical steps to block the fraudster’s path starting now.
1) Segregate duties
If one person controls initiation, approval, and payment, you’ve built a perfect fraud machine. Split roles. Always. No one person should control an entire transaction process. This includes payroll, procurement, and reconciliations. In Ugandan SACCOs, for example, we’ve seen treasurers process fake withdrawals for non-existent members simply because no one else was checking.
2) Verify before you trust
Your most trusted employee could be your biggest threat. Do independent verifications, especially for suppliers, ghost staff, and “urgent” payment requests. Call back. Confirm. Don’t assume. That “vendor” might be your staff using a cousin’s bank account.
3) Monitor your logs
System logs don’t lie, but only if you review them. Watch for late-night logins, multiple failed password attempts, or sudden system changes. Many fraud cases begin after hours when no one is watching. Install alerts. Review them weekly.
4) Rotate responsibilities
Never let one person own a role for years without a break. Fraud loves routine and familiarity. Make leave mandatory. Rotate roles periodically. That alone exposes long-running schemes. A cashier’s theft was only discovered during maternity leave in one Eastern Uganda district.
5) Train everyone
Fraud is not just an IT problem. It’s a people problem—train staff to spot social engineering, phishing emails, and manipulation tactics. Make fraud prevention part of onboarding and annual refresher training. When everyone is alert, the fraudster is isolated.
Final word: Fraud isn’t just a finance problem. It’s a leadership failure.
Fix the culture. Build systems. And for heaven’s sake, stop relying on trust alone. Trust is not an internal control.
Stay alert. Stay protected.
