About Me CBinns IIA...About Me •Worked on a hotline as a confidential investigator for NYC DOI....

About Me

• Worked on a hotline as a confidential investigator for NYC DOI.

• Studied hotlines since 2007.

• My PhD dissertation was on the topic of fraud hotlines.

• Wrote a book about hotlines, which was published by CRC Press in 2014.

My Book

Key Themes

• Design: Fraud hotlines are ubiquitous and effective yet often underutilized, due in part to design flaws.

• Performance: Fraud hotline performance is important, yet often overlooked.

• Assessment: Evaluating other people’s hotlines can help you create a better hotline.

Definition

Fraud Hotlines:

Anonymous reporting mechanisms for employees, and third parties, to report

organizational crime, fraud, waste and abuse.

Source: The Philadelphia Inquirer, June 7, 2018

Source: The Philadelphia Inquirer, April 28. 2018

Source: The Philadelphia Inquirer, January 26, 2019

ACFE Report to the Nations, 2018

Source: ACFE 2018 Report to the Nations, Pg. 4

KPMG Global Profiles of the Fraudster, 2016

Source: KPMG 2016 Global Profiles of the Fraudster, p. 9

ACFE Report to the Nations, 2018

Source: ACFE 2018 Report to the Nations, Pg. 17

Source: E&Y Global Fraud Survey, 2008, p. 10

Source: 2014 E&Y Global Fraud Survey, p 3

Source: E&Y 2011, p. 10

Source: E&Y 2011, p. 13

Source: 2016 E&Y Global Fraud Survey

Source: 2018 SEC Annual Report to Congress, Whistleblower Program, p. 20

Source: 2018 SEC Annual Report to Congress, Whistleblower Program, p. 14

Source: 2018 SEC Annual Report to Congress, Whistleblower Program, p. 24

Source: 2018 SEC Annual Report to Congress, Whistleblower Program, p. 12

Source: Business Report, South Africa

Source: The Philadelphia Inquirer, June 7, 2018

Source: The Inquirer, Philadelphia June 7, 2018

Source: The Inquirer, Philadelphia May 24, 2018

Source: CBS 3 Philly, May 22, 2018

The Fraud

The Discovery

The Fix

Prince George’s Hotline designed to protect tax dollars, wastes tax dollars

Source: The Washington Post

Source: Charlie Weston, The Irish Independent, January 26, 2017

Low Call Volume

• Employees are unaware a hotline exists.

• Employees are aware, but do not appreciate the value of their report.

• Employees fear retaliation.

Source: Fraud Magazine, Association of Certified Fraud Examiners

Key Themes

• Design: Fraud hotlines are ubiquitous and effective yet often underutilized, due in part to design flaws.

• Performance: Fraud hotline performance is important, yet often overlooked.

• Assessment: Evaluating other people’s hotlines can help you create a better hotline.