Client Center

Red Flag Reporting

Your employees can report concerns safely, securely, and anonymously 24/7.

Red Flag Reporting is your hotline for:

  • fraudulent activity / theft
  • misconduct
  • safety violations
  • unethical behavior

Protect your organization and employees.

Why does a reporting hotline make sense for me?

Financial Considerations

  • 43% of frauds are found by someone speaking up. Speaking up is the #1 way fraud is detected. In fact, the second-most common detection method accounts for only 15% of detected frauds. The hotline facilitates and encourages such communication. Becasue it allows anonymity, it empowers those who may otherwise be too intimidated to speak up.
  • The #1 way fraud is prevented is by establishing a strong and positive tone at the top. The hotline is a visible and frequent reminder of this positive tone. It is presented as working together for the common good.
  • The average occurrence of fraud at an organization with a hotline is $100,000 and without a hotline is $180,000. Just one time of catching fraud early, and reducing the damages, potentially covers the cost of the hotline for decades... And that's not to mention what it prevents.
  • Beyond any financial loss, fraud losses are otherwise painful. They lower company morale, damage reputations and distract people from more productive work.

Employment Practices Considerations

  • Employment-related claims are on the rise. It is estimated that three out of every five companies will be sued by an employee for a matter that occurred sometime between the pre-hiring process through the exit interview. The average court settlement for an employee-related claim is $40,000. The average verdict in an employee-related case is $140,000.
  • Having a hotline in place allows for employers to address a situation early rather than letting it continue and end in the courts. A hotline also eliminates the employee excuse that they had nowhere to turn.

Why does Red Flag Reporting make sense for me?

Besides providing you with a mechanism that supports the #1 way fraud is detected (employee tips), and the #1 way fraud is prevented (a strong tone at the top), Red Flag Reporting provides:

  • a nationwide toll-free number staffed by live operators 24/7/365.
  • a web reporting portal available 24/7/365.
  • web-based ability to report in both English and Spanish (covers substantially all United States, Mexican, and Canadian residents).
  • call-based ability to report in 200+ languages.
  • posters to be hung at key locations within your entity.
  • wallet cards for all employees.
  • quarterly emails to all employees to encourage familiarity with the hotline.
  • quarterly newsletter to management regarding financial ethics and risks.
  • one hour live fraud awareness seminar for your employees.
  • pre-recorded fraud awareness webinar for your future use.
  • detailed reports.
  • professional report assessment.
  • peace of mind!

Why is Red Flag Reporting a compelling provider?

Financial Considerations

  • Most providers do not provide employee training as part of the set-up fee. We provide live, onsite training from an experienced fraud examiner. A webinar is available for those unable to attend the onsite training.
  • Our hotline allows web reporting and live, 24/7 phone reporting via a toll-free number. We also offer collateral material that helps keep the hotline top of mind, including wallet cards, posters, and quarterly emails.
  • Unlike most hotlines, our reports do not go straight from the operator to the client. Our reports first go to an experienced fraud examiner who provides a preliminary assessment of the matter when it is presented to your organization.

Employment Practices Considerations

  • By putting this hotline in place, you will convey to your employees that your organization is committed to their safety and well-being. As an employer, you will have comfort in the fact that the hotline provides you with a safeguard that may identify employee concerns or complaints before they develop into a litigious situation.
  • Employees can report critical issues such as safety violations, threats, harassment, substance abuse and discrimination.

Joni Tonnemacher, CPA, MAFF