It Takes a Village: Educating the Community on Fraud Prevention

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You’ve heard the phrase “it takes a village.” Well, it takes a village to effectively fight fraud, and this sentiment was echoed during the “Building a Community-Oriented Fraud Strategy” virtual session at the 33rd Annual ACFE Global Fraud Conference. Philip Swan, CFE, FCLA, FRM is Fraud Manager at Gate City Bank headquartered in Fargo, ND. He has executed several anti-fraud educational programs for different groups around his community.

With a community-oriented fraud strategy, community members can become more proactive in fighting fraud. In Swan’s words, “An educated community base makes a more difficult target,” his hope is that community anti-fraud educational programs help people learn how to problem-solve. Developing these types of programs create a win-win situation for all. Members of the community can acquire the tools they need to fight fraud and help reduce the stigma of being a fraud victim, and helping the community fight fraud helps create a positive image for your organization.

Before implementing a community-based anti-fraud program, Swan says you should consider these five things:

  • Who is your audience?

  • What is your organization’s culture?

  • What is your comfort level in trying new things?

  • What resources are available to you in your area?

  • What network have you already established?

Now that you’ve identified your target audience, Swan suggests starting with data to determine how to reach this audience. Here are four things to think about:

  • Are you tracking the types of scams affecting your community? Different times of year and different current events could affect what scams are commonly appearing. For example, in April, when the deadline to file taxes gets closer, IRS scams increase. In February, the month of love, romance scams are common. If a natural disaster just occurred, you’ll see more natural disaster scams.

  • Are you tracking the fraud typologies being used by fraudsters? What type of fraud is common in your area right now? Usually there are certain scams that hit at certain times.

  • What other sources of information can be utilized for data?

  • What are your organization’s customer demographics? Can you start to lump certain fraud dangers to certain age brackets?

Swan notes that the common types of fraud right now include check fraud/online account takeover and alternative payment methods to send funds. He says the most prevalent are romance scams, but Amazon or virus protection fraud cases are increasing rapidly.

To target specific demographics, Swan suggests contemplating these five things:

  • Which medium is appropriate for the targeted group?

  • Where can you find captive audiences with your targeted group?

  • What geographic barriers will impact how you communicate?

  • Are you using appropriate lingo or jargon to reach the group? Remember, you need different ways of speaking for different groups.

  • Do you have access to technological resources? Does your organization have a studio to create videos? Swan says videos are very effective in reaching audiences.

Reaching the Elderly Population

The elderly population is a common target for scams. To reach them, Swan suggests using communication channels like radio and TV. He also recommends going through any elderly or vulnerable adult abuse prevention groups. Also, determine if you can get inside an organization or group to give educational presentations where conversations can be tailored to the audience. When creating presentations, remember to consider using larger, bolder font so it’s easier to read.

Reaching Young Adults

To reach young adults, Swan encourages creating presentations for school groups, and the conversation should be more focused on stories as opposed to the mechanics of fraud. Relate to students by telling them about potential career paths, and use video clips — the shorter, the better — and social media, if possible. Keep in mind how speaking should be different between different groups. You’re going to talk differently to a group of young adults as opposed to a group of senior citizens. You can also reach young adults by speaking at a Career Day or high school law studies classes. Remember, young adults have shorter attention spans, so you must quickly grab their attention and hold their attention. Ultimately, you can discuss business ethics to plant that seed in the students to remember decision making techniques for future situations.

When in doubt, tell a joke. Swan had a PowerPoint slide that included a riddle: What do you call a scammer going down the stairs?

The answer? Condescending.