Only by
understanding the extent of fraud victimization can agencies begin the process
of designing and targeting risk management activities and address new and
emerging problems as they come to light. Under-reporting of a scam is one of
the chief obstacles for law enforcement officials and this is why solutions are
in place to deal with this issue
These
include hotlines, whistleblower protection, reporting legislation and
establishment of central fraud detection agencies. Remember that you need to
report a scam because otherwise, innocent others could fall into the trap.
Why Report a Scam?
To avoid
deterrent effects from being diluted, you need to take the initiative and
report a scam. This can lead to upholding of ethical standards and ensure that
similar offenses do not repeat themselves in the future.
Appropriate
fraud prevention strategies need to be in place so that the scam does not remain
from being undisclosed or unreported. Unless the scam is reported, it is
difficult to devise appropriate measures to prevent it from becoming a real
problem.
Consider
the community as well. The community members will also suffer if the crime has
not been dealt with and incidents do not find their way into official crime
statistics. Deterrents are only in place if the person affected takes the step to report a scam. Effective reporting also upholds law and order in the
community.
It enhances
the conviction in the community that fraud is unlawful and likely to result in
prosecution when detected. If offenders are not dealt with, organizations may
be facing repeated victimization not only by the same person, but by other
criminals who want to take advantage of their strategies.
For example, Charles Ponzi in 1920 had
identified a pyramid scheme whereby early investors were able to become
oriented towards trusting a scammer who paid them the money with the cash from
later investors. Finally, the scammer would collect the entire money and escape
away from the law and the victims.
Measures for Improvement in Reporting a Scam
Agencies
have been motivating people to report a scam. Police and other regulatory
agencies regularly review their fraud control arrangements and ensure that
those experiencing fraud are helped in time to report a scam. Internet fraud,
internally detected scams and other schemes to swindle people of their hard
earned cash can prove lethal if fraud reporting systems are not in place.
Fraud Reporting Systems
These
include central reporting points, complaint hotlines, alternative avenues for
reporting and other means such as anonymous suggestion boxes and complaint
desks. Since the promulgation of fraud prevention legislation, fraud matters
have been handled with police involvement whether the investigation is external
or internal.
While
scammers may be stealing services or products from individuals or
organizations, in the case of online fraud, the biggest problem is the
anonymity offered by the internet. Whether it is investment fraud, identity
theft or other types of internet fraud, or offline scams, it is essential to
report a fraud to protect not only yourself, but the community as well.
