Put fraud ownership on the right line
Assign fraud-prevention responsibilities using the IIA Three Lines Model.
The move: separate ownership, challenge, and assurance. First line The first line runs the process and owns the risk in real time. They hold the order, verify the customer, block the payout, or reject the vendor change. Second line The second line provides the fraud-risk method: rules, thresholds, policy, training, monitoring, and challenge. It helps the first line make better decisions without becoming the permanent operator. Third line The third line gives independent assurance. Internal audit tests whether the design and operation of controls are reliable enough for governance to trust. When these lines blur, fraud response slows down or…
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