What is the most common detection method for fraud as noted in various studies since 2002?

The most common detection method for fraud, as noted in various studies since 2002, is tips from employees. This approach is particularly effective because it leverages the insights and observations of individuals who may be aware of suspicious activities within the organization. Employees may notice inconsistencies or unethical behavior that their supervisors or external auditors might not detect.

The prevalence of employee tips highlights the importance of fostering a culture of openness and trust, which encourages employees to report any suspicious activities without fear of retaliation. Organizations that implement effective whistleblower policies and channels for reporting can significantly enhance their ability to detect fraudulent behavior early.

The other methods, while valuable in their own right, do not match the effectiveness of tips from employees in the frequency of fraud detection. Document reviews, internal audits, and surveillance systems are all important tools, but they may not capture as many instances of fraud as the direct observations and reports from employees who are often in the best position to recognize fraud as it occurs.