Factors Leading to Hotline Distrust

A dollar bill with locks on it

Fraud is detected through tips more than any other method, making hotlines one of the leading anti-fraud controls. More than 39 percent of whistleblowers used telephone hotlines, and more than half used email or a web-based form to report their complaints/tips.

However, a lack of trust can affect an organization’s ability to obtain tips through a hotline. According to the Association of Certified Fraud Examiners, deploying a quality program and establishing a positive tone from leaders are critical for an effective hotline program.

According to a recent article in Fraud Magazine, here are some of the top factors leading to hotline reporting system distrust:

  • Employees don’t understand the system
  • Lack of personalization for an employee’s concern
  • Improper handling and lack of training
  • Hotline management
  • Too many reporting mechanisms
  • Overemphasizing “credible” complaints
  • Obstacles of negative incidents and retaliation
  • Relying on actions speaking louder than words

And here are some tips for building a trusted hotline program:

  • Training and awareness
  • Good communication
  • Access
  • Transparency

By being aware of hotline reporting trepidations and striving to build a trusted program, organizations can help prevent fraud.

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