Addressing Fraud in the Law Office

Ways to Prevent and Address Fraud in the Law Office

Although most people would think the law office would be the last place for fraud to happen. This however is untrue The Association of Certified Fraud Examiners states that fraud costs the average workplace $175,000. (ADMIN, 2008). Fraud can be any false representation of a matter of fact, whether by words or by conduct that is misleading or false. This intentional deception results in harm to any company affected. Usually fraud results in inappropriate or illegal gain that is connected to the firm. Fraud is a serious issue and the statistics are getting higher each year. Addressing fraud before it starts is the key this will help reduce any legal and reputational risk. Some way to prevent fraud that the law firm could use is to set in place specific codes of conduct to help employees understand the importance of looking for fraud and reporting it.        

Employees should not be afraid of retribution for turning someone in for fraud. Fear of retribution is one of the number one causes of failing to turn fraud in. Making fraud reporting as easy and anonymous as possible will help the firm in dealing with the fear of retribution from their fellow employees. Some tips to help make reporting fraud easier and anonymous are things like, having an anonymous outsourcing tip line in place that will just print out a report of the allegations the employees can really help.  Making the anonymous person feel safe and guarantees that their voice won’t be recognized, also can help mitigate some of the person’s worry of retribution. Make sure that all the information is accurate and is also important. (Ricciardella, 2001) Law firms should make all employees aware that it is their fiduciary duty to report the fraud if they are a witness to it.

A good idea for law offices would be to have all employees trained in ethical standards of their office. Making an overall statement explaining the culture of the company is advised. Having a mission statement may also help state that the firm run operates in an ethical manner and that there is zero tolerance for fraud in the workplace. Also have a code of conduct specific for senior management to show them what to look for and how to go about resolving the issue. (Masci, 2012)

Businesses need to make sure they have programs in place to help prevent and turn in fraud in an anonymous manner. This is likely to help any employees that feel like they will be discriminated against for doing so. Preventing fraud can also help save money and protect the assets of the company, acts as a employees deterrent against any future incidents of fraud, and also helps retain some of the best employees. Most importantly setting up a program to turn in fraud make your employees feel comfortable. Anonymous tips are the number one way fraud is turned in. Having a good fraud program put in place can help the tips keep coming and help put a stop to fraud in the office.

Bibliography

ADMIN, D. (2008). Take Steps to Prevent Fraud in Your Law Practice. DMC- ADMIN, 1.

Masci, F. (2012). Detecting, Deterring, amd Preventing Fraud. PRGX, 2.

Ricciardella, A. S. (2001). Preventing Fraud How to Safe Guard Your Organization. BoardSource, 19.