FRAUD DETECTION TECHNIQUES IN MICROFINANCE BANKS

Live-Online Training: N135,000
Classroom Training: N 165,000
3 - 4 participants: 5% discount
5 or more participants: 10% discount

This programme can run as an online or classroom training

(Available also for Customised Training by Duration, Venue & Fee)

Programme Description:

For Microfinance Managers to appreciate the framework for managing fraud risks, they are expected to understand why Microfinance Banks are vulnerable to fraud, the most common types of Microfinance frauds, danger signals and the elements and challenges of risk management. In other words, an effective Microfinance Manager, must have a working knowledge of fraud detections, fraud preventions, and response to fraud as required by them.

Course Objectives

By the end of this training, participants will:

• Have a good overview of Fraud and why Microfinance Banks are most vulnerable.
• Understand and be able to explain correlation between Fraud and Internal Control Systems in Microfinance Banks. 
• Be able to identify various Types of Frauds in Microfinance Banks.
• Understand the Framework for Management of Frauds.
• Appreciate the realities and areas of Risk Management in Microfinance Banks.
• Know well the key challenges for managing Fraud in MFBs.
• Get the overview of Internal Audit in Microfinance Bank.
• Know the role of Internal Controls in Preventing Fraud in the Microfinance Banks.

Course Contents

DAY ONE

Introduction to Fraud and Microfinance

• Definition of Fraud
• Overview of Fraud in Microfinance
• Why is Microfinance most vulnerable to Fraud?  

Most Common Types of Frauds in Microfinance

• Fictitious Loans
• Kickbacks
• Cash Theft
• Collusion in Issuance of Loans
• Manipulation of Financial Data
• Rescheduling and Refinancing
• Inappropriate Write-offs

Framework for Managing Fraud Risk

• Fraud Detection
• Fraud Prevention
• Response to Fraud

DAY TWO

Areas Risk Management in Microfinance

• Risk Management within the Scope of;
• Group (Peer) Lending
• Character Assessment
• Forced Savings / Co-signature Requirements
• Small Loan Sizes
• Varied Loan Terms
• Limits on Loan Size Increases
• Loan Approval Processes
• Collection Centers
• Conducive Environment
• Employees and Characters Screening
• Transparency
• Simplicity
• Accountability
• Security

What are the Key Challenges in Managing Microfinance Fraud

• Maintaining cost-effective controls, high staff morale and culture of ethics, continuous awareness of new and complex Fraud types etc.

DAY THREE

Overview and Introduction to Internal Audits

• Differences Between Internal Control and Internal Audit
• Scope of Work and Authorization
• Audit of Financial Transactions
• Policies and Compliances
• Internal Control Officers Roles and Responsibilities
• Responsibilities of Management and Personnel

Internal Controls and Fraud Prevention

• Review and Sampling of New Loans Issued
• Visits to Clients
• Segregation of Duties
• Supervisory Committee / Internal Audit Department
• Policies
• Record Keeping
• Management Information System
• In-transit / Suspense Accounts
• Bank Reconcilements
• Internal Control Reports
• Auditing and Audit Trails
• Integrations with RM and CRM