Guidance on Implementing a Fraud Hotline

Information Technology Risk Management Program (IT-RMP)Federal Deposit Insurance Corporation (FDIC)Risk Management

Summary: The FDIC is providing guidance to financial institutions on implementing a fraud hotline to minimize potential and actual fraud risks as part of a bank‘s governance and enterprise risk management program.

Highlights: .

The FDIC encourages financial institutions to consider the benefits of implementing a fraud hotline as a confidential communication channel to identify fraud and reduce fraud-related losses.

The Association of Certified Fraud Examiners – in its “2004 Report to the Nation” – stated that organizations without mechanisms to report fraud suffered financial losses that were more than twice as high as organizations with anonymous fraud-reporting mechanisms.

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