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Median loss for a business is reduced by 82.4% if they have a hotline and pay cash rewards. 59.2% of the reduction comes from a hotline and 23.2% comes from rewards for whistleblowers.
“The issue is no longer whether to establish a program of anonymous reporting, but how?”
- Lynn Clements, PhD, Florida Southern College, published expert on whistleblower issues.
In our 2010 study 40.2% of theft was detected through a tip. Employees ranked highest for submitting tips at 49.2 %. Customers submitted 17.8% of the tips. Vendors submitted 12.1% of the tips, and 20.9% of the tips came from other sources.
Since our 2002 study to date, tips were by far the most common detection method, catching nearly three times as many frauds as any other form of detection. The ability to report fraud anonymously is key because employees often fear making reports due to threats of retaliation from superiors or negative reactions from their peers.While tips have consistently been the most common way to detect fraud, the impact of tips is, if anything, understated by the fact that so many organizations fail to implement fraud reporting systems.
Organizations that have tip lines tend to detect frauds seven months earlier than those who do not.
57.9% of the hotline reports involved fraud by a manager or executive. These are cases in which confidentiality would more likely be a consideration of the whistleblower. The median loss reported from employee theft was $80,000 versus $200,000 by management and $723,000 by executives with better access to resources. Tips were the most commonly cited detection method in cases perpetrated by executives. This data indicates that hotlines are a very effective fraud detection tool.



We are on duty protecting your business assets 24/7/365 without the expense of employee insurance payments, taxes, sick leave, or annual leave. Our focus is on the reduction of your losses. Our staff has over a century of experience and is dedicated to increasing your bottom line. Our call center employs bilingual professionals to take the calls. We supplement but do not replace cameras, security forces, or security systems. Based on tip information, you learn where to best focus other loss prevention tools and staff.