The Association of Certified Fraud Examiners’ (ACFE) “Occupational Fraud 2026: A Report to the Nations®” indicates that occupational fraud is more likely to be detected through a tip, which has been the most common detection method in every edition of the report.1
The ACFE’s research indicates that median losses increased by 50% at organizations, and the duration of the scheme lasted six months longer without a hotline.2 This research reinforces the value of accessible reporting channels as part of a broader anti-fraud and compliance program.
Employees are the eyes and ears of your organization; you want to know what they know. Implementing a third-party hotline provides the option to report concerns anonymously or confidentially for your employees, customers, and vendors to alert you about potential fraud or unethical behavior in your organization.
Developing a Speak-Up Culture
An effective ethics and compliance hotline is only one component of a successful compliance reporting program. To encourage employees, customers, vendors, and other stakeholders to report concerns, organizations should foster a culture where ethical behavior, accountability, and transparency are reinforced from the top down. A trusted reporting environment can help individuals feel comfortable raising concerns about suspected fraud, misconduct, compliance violations, or unethical behavior before issues escalate.
Regular communication, ethics awareness initiatives, management support, and visible commitment to accountability can help build trust in the reporting process. When individuals believe their concerns will be heard and addressed, they may be more likely to come forward with information that helps identify fraud, ethics, and compliance issues earlier.
Organizations that combine a trusted ethics hotline with ongoing communication, leadership support, and anti-fraud awareness initiatives may be better positioned to identify concerns earlier and strengthen their overall approach to fraud detection and compliance oversight. Building trust and encouraging individuals to report concerns is an important first step. However, organizations also should consider the structure of the reporting program itself and the features that support an effective reporting experience.
What Are the Elements of an Effective Hotline?
Creating an effective ethics and compliance hotline involves more than simply providing a phone number or web portal. Organizations should consider how the program supports reporting, follow-up, and ongoing visibility into potential fraud, ethics, and compliance concerns.
Key elements of an effective hotline program include:
- Accessible Reporting Channels: Individuals should have a convenient way to report concerns. Offering both phone and web-based reporting options can help remove barriers to reporting and encourage participation from employees and other stakeholders.
- Leadership Support & Visibility: Employees are more likely to use a reporting system when leadership consistently reinforces the importance of ethical conduct, transparency, and accountability. An effective hotline program should be supported by clear communication from leadership and integrated into broader compliance efforts.
- Anonymous Reporting Options: Providing a mechanism for anonymous reporting can help individuals feel more comfortable raising concerns, particularly when reporting sensitive issues involving fraud, misconduct, or potential compliance violations.
- Consistent Intake & Follow-Up: A hotline should support the secure documentation, review, and routing of reported concerns. Clearly defined review procedures can help organizations respond consistently and maintain confidence in the reporting process.
- Ongoing Awareness & Program Reinforcement: A hotline program should not be treated as a one-time implementation project. Regular communication, awareness initiatives, and employee education can help keep reporting resources visible and reinforce a culture of accountability.
Once a reporting program is established, organizations should be prepared to respond when concerns are submitted. Understanding how reports are captured, reviewed, and routed is an important component of maintaining an effective compliance reporting program.
What Happens After Someone Reports a Concern?
Submitting a report should be the beginning of a structured process, not the end of one. An effective ethics and compliance reporting program helps ensure concerns are appropriately documented, reviewed, and routed for further action.
When a concern is submitted through a reporting hotline, the report is first captured and documented within a case management platform. The report is then routed to appropriate organizational stakeholders for evaluation and follow-up. Depending on the nature of the concern, management may delegate the matter for investigation, document investigative activities, and maintain communication with the reporter when appropriate.
Timely review is important because fraud schemes often continue for extended periods before they are detected. By establishing clear intake, review, and response procedures, organizations can increase the likelihood of identifying potential issues sooner and responding before losses, reputational damage, or compliance concerns grow more significant.
In addition to individual case management, organizations can use reporting data, trends, and analytics to identify recurring risk areas, inform internal control improvements, and strengthen fraud prevention efforts across the organization. While effective intake and follow-up procedures are important, organizations also should periodically assess whether their reporting program meets its intended objectives.
How to Evaluate Your Current Program
Organizations periodically should assess whether their ethics and compliance hotline is functioning as intended. Having a hotline in place is only the first step; leaders should evaluate whether the program is accessible, trusted, and capable of supporting effective follow-up.
Consider the following questions:
Is Reporting Easy & Accessible?
- Can employees, customers, and vendors easily locate reporting information?
- Are reporting options available online and by phone?
- Can concerns be submitted anonymously if desired?
Is the Reporting Process Trusted?
- Do employees, customers, and vendors understand how concerns will be handled?
- Does leadership actively support ethical reporting?
- Do stakeholders believe concerns will be reviewed appropriately?
Can the Organization Respond Effectively?
- Are reports documented within a centralized case management system?
- Are concerns routed to appropriate individuals for review?
- Can management monitor trends and reporting activity?
Are You Leveraging Reporting Data?
The value of a compliance reporting system extends beyond individual reports. Organizations increasingly use hotline data, analytics, and monitoring capabilities to identify unusual patterns, support fraud detection efforts, and uncover opportunities to strengthen internal controls. Combining a reporting hotline with proactive data surveillance can provide a broader view of organizational risk.
For organizations looking to establish a new reporting program or enhance an existing one, a third-party hotline solution can help support reporting, case management, and ongoing monitoring efforts.
How IntegraReport Supports Ethics & Compliance Reporting
Forvis Mazars offers IntegraReport®, an anonymous ethics and compliance hotline designed to help organizations identify fraud, ethics, and compliance concerns before they result in significant financial, operational, or reputational consequences.
The platform provides organizations with a phone hotline and web-based reporting portal, creating a convenient channel for submitting concerns. Available 24 hours a day, seven days a week, IntegraReport supports timely reporting and offers access to an integrated online case management system that helps document reports, track activity, and facilitate communication with reporters when appropriate.
In addition to technology, organizations receive support from fraud, ethics, and compliance professionals at Forvis Mazars who assist with hotline implementation and ongoing support. The platform also provides reporting and analytics capabilities that can help management identify trends and gain greater visibility into organizational risk areas.
Ready to evaluate your ethics and compliance reporting program? Learn how IntegraReport can help strengthen fraud detection, support anonymous reporting, and reinforce a culture of transparency and accountability within your organization.