Final answer:
The most common proactive fraud detection approach is the installation of reporting hotlines, which allow for anonymous reporting of fraudulent activities. Other tactics to detect or prevent crime and fraud include community policing, intensive foot patrols, targeted surveillance, and insurance company strategies like offering incentives for security system installation.
Step-by-step explanation:
The most common proactive fraud detection approach that organizations have implemented in recent years is to install reporting hotlines. These hotlines serve as a secure and anonymous way for employees and others to report suspicious activities or concerns about potential fraud, which can then be investigated by the organization. Reporting hotlines are considered an effective first line of defense because they empower individuals to voice concerns without fear of retribution. Beyond hotlines, organizations may also enhance their fraud detection capabilities through various means including internal and external audits, data analytics to identify anomalies, and conducting fraud awareness training.
When it comes to reducing crime, various police tactics have been employed. For example, community-oriented policing can help build trust and legitimacy, which may reduce crime rates. Similarly, the presence of intensive foot patrols in hotspots for violent crime has been found to be an effective deterrent. Surveillance measures such as CCTV are also utilized in targeted locations to prevent criminal activities. Regarding insurance fraud, insurance companies have adopted strategies like investigations and monitoring behavior to mitigate moral hazard and prevent extreme cases of fraud. By offering reduced rates to businesses that install and maintain security and safety systems, insurance companies incentivize the adoption of measures that can deter fraudulent claims.