Course Overview
Fraud Awareness and Prevention Plan
Fraud remains one of the most significant threats to organizations in Malaysia, affecting financial stability, reputation, regulatory compliance, operational efficiency, and stakeholder trust. This training programme equips participants with practical knowledge and skills to identify fraud risks, detect red flags, strengthen internal controls, conduct fraud risk assessments, and develop effective fraud prevention and response strategies aligned with Malaysian laws, regulations, and governance expectations.
The programme integrates Malaysian legal requirements, governance frameworks, anti-corruption practices, internal control systems, whistleblowing mechanisms, investigation procedures, and fraud prevention planning.
Course Objectives
By the end of the Fraud Awareness and Prevention Plan, participants will be able to:
Understand the concepts, causes, and types of fraud in organizations.
Identify common fraud schemes and fraud risk indicators affecting Malaysian organizations.
Recognize Malaysian legal and regulatory requirements relating to fraud prevention and governance.
Conduct basic fraud risk assessments and identify organizational vulnerabilities.
Design and strengthen fraud prevention and detection controls.
Understand whistleblowing, fraud reporting, and investigation fundamentals.
Develop practical fraud awareness and prevention strategies.
Promote an ethical culture, integrity, and accountability within the organization.
Who Should Attned
This Fraud Awareness and Prevention Plan course is ideal for:
- Board Members
- Senior Management
- Compliance Officers
- Internal Auditors
- Risk Management Personnel
- Human Resource Personnel
- Finance & Procurement Personnel
- Security Personnel
- Integrity Officers
- Legal Officers
- Department Heads
- Operational Managers
- Supervisors
- Employees involved in control processes
Training Methodology
The Fraud Awareness and Prevention Plan programme utilizes an interactive and practical learning approach tailored to the Malaysian business and regulatory environment:
Interactive Lectures: Comprehensive coverage of regulatory requirements and control frameworks.
Malaysian Case Studies: Practical examination of local corporate and public sector fraud incidents.
Desktop Scenarios & Roundtable Discussions: Simulated fraud risk scenarios, risk mapping, and group problem-solving.
Course Details
Duration
1 Day (9:00 am to 5:00 pm)
Course Content
Module 1: Understanding Fraud in Organizations
- Key Learning Areas
- Definition of fraud
- Difference between fraud, corruption, misconduct, theft, and negligence
- Fraud Triangle Theory
- Pressure
- Opportunity
- Rationalization
- Fraud Diamond Theory
- Why employees commit fraud
- Cost and impact of fraud on organizations
- Fraud trends in Malaysia
- Industry-specific fraud risks
Module 2: Malaysian Legal & Regulatory Framework on Fraud
- Malaysian Laws and Regulations
- Malaysian Anti-Corruption Commission Act 2009 (MACC Act)
- Section 17A Corporate Liability Provision
- Penal Code provisions relating to fraud and criminal breach of trust
- Companies Act 2016
- Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act (AMLA)
- Whistleblower Protection Act 2010
- Employment Act implications
- Personal Data Protection Act 2010 (PDPA)
- Bursa Malaysia requirements
- Bank Negara Malaysia expectations
- Public sector integrity requirements
- Governance & Compliance Expectations
- Role of Board and Management
- Governance, Risk & Compliance (GRC)
- Three Lines of Defence Model
- Internal audit responsibilities
- Duty of care and fiduciary obligations
Module 3: Common Fraud Schemes & Fraud Risk Indicators
Types of Fraud in Organizations
- Occupational Fraud
- Asset misappropriation
- Payroll fraud
- Procurement fraud
- Expense claims fraud
- Inventory theft
- Cash theft
- Ghost employees
- Conflict of interest
- False invoicing
- Financial Statement Fraud
- Revenue manipulation
- Fictitious transactions
- Concealment of liabilities
- False reporting
- Corruption & Bribery
- Bribery (Kickbacks, Facilitation Payment, etc)
- Abuse of Position
- False Claim
- Offences under Corporate Liability
- Vendor collusion
- Cyber & Digital Fraud
- Phishing
- Business email compromise
- Personal Data Protection & Identity Theft
- Data manipulation
- Cyber-enabled fraud
- Emerging Fraud Risks
- AI-generated fraud
- Deepfake scams
- Cryptocurrency-related fraud
Fraud Risk Indicators & Red Flags
- Behavioural Red Flags
- Lifestyle changes
- Financial distress
- Unusual relationships with vendors
- Resistance to audits
- Excessive control over processes
- Transactional Red Flags
- Duplicate payments
- Round-number invoices
- Unusual journal entries
- Split purchases
- Missing documents
- HR-Related Red Flags
- Excessive overtime claims
- Fake qualifications
- Leave avoidance
- High employee turnover
- Procurement Red Flags
- Single-source procurement
- Vendor favoritism
- Repeated emergency purchases
Module 4: Fraud Risk Assessment & Internal Controls
- Fraud Risk Assessment Methodology
- Risk identification
- Risk analysis
- Risk evaluation
- Risk treatment
- Monitoring and review
- Fraud Risk Mapping
- High-risk departments
- Process vulnerability analysis
- Inherent vs residual risk
- Risk Rating Methodologies
- Likelihood assessment
- Impact assessment
- Control effectiveness
- Fraud Risk Registers
- Developing fraud risk registers
- Documenting controls
- Assigning accountability
Internal Controls for Fraud Prevention
- Internal Control Principles
- Preventive controls
- Detective controls
- Corrective controls
- Segregation of Duties
- Authorization controls
- Approval hierarchy
- Access restrictions
- Financial Controls
- Reconciliation processes
- Payment verification
- Vendor due diligence
- HR Controls
- Background screening
- Employee monitoring
- Mandatory leave policy
- IT & Cybersecurity Controls
- Access management
- Password controls
- System audit trails
- Data protection measures
- Internal control gap assessment
Module 5: Whistleblowing, Fraud Detection & Investigation Fundamentals
- Whistleblowing & Reporting Mechanisms
- Importance of whistleblowing systems
- Confidential reporting channels
- Anonymous reporting mechanisms
- Whistleblower Protection Act 2010
- Anti-retaliation measures
- Investigation escalation procedures
- Reporting protocols
- Fraud Detection Techniques
- Data analytics for fraud detection
- Exception reporting
- Trend analysis
- Surprise audits
- Continuous monitoring systems
- Digital forensics basics
- Monitoring high-risk transactions
Fraud Investigation Fundamentals
- Investigation Procedures
- Initial response procedures
- Investigation planning
- Roles and responsibilities
- Evidence Management
- Documentary evidence
- Electronic evidence
- Chain of custody
- Confidentiality requirements
- Interview Techniques
- Witness interviews
- Suspect interviews
- Documentation of statements
- Investigation Reporting
- Root cause analysis
- Corrective action recommendations
- Reporting to management
- Coordination with Authorities
- MACC
- Royal Malaysia Police
- External auditors
- Regulators
Module 6: Ethics, Integrity & Fraud Prevention Planning
- Ethics & Integrity in Organizations
- Importance of ethical culture
- Tone from the top
- Code of conduct
- Integrity policies
- Conflict of interest declarations
- Gifts and entertainment controls
- Employee awareness programmes
- Psychological safety in reporting
- Developing a Fraud Awareness & Prevention Plan
- Components of a Fraud Prevention Plan
- Fraud prevention policy
- Governance structure
- Risk assessment framework
- Internal controls framework
- Reporting mechanisms
- Investigation procedures
- Training and awareness programmes
- Vendor management controls
- Monitoring and auditing
- Corrective action management
- Fraud Response Planning
- Incident response protocols
- Crisis communication
- Business continuity considerations
- Key Performance Indicators (KPIs)
- Monitoring effectiveness
- Reporting metrics
- Continuous improvement
- Documentation Requirements
- Policies
- Procedures
- Investigation records
- Risk registers
- Training records
