According to the Association of Certified Fraud Examiners,
active detection methods (such as surprise audits or data monitoring) are far
more effective than passive methods (such as confessions or notification by
police). To reduce the duration of any fraud scheme and lower overall financial
losses, companies should use such active detection methods as IT controls,
account reconciliation and internal audits. Tips, the leading fraud detection
method, are valuable. But they should be facilitated with hotlines that are
actively promoted to employees and other stakeholders.