Culture, Compliance and Humanizing Fraud Risk - Dr. Ursula Schmidt - Episode 168

Why It Matters

Shifting fraud prevention toward human-centered culture and protected, incentivized reporting can surface schemes earlier, reduce financial and reputational losses, and improve compliance oversight. Stronger tone at the top and clearer reporting channels materially increase the likelihood that red flags are raised and acted upon.

Summary

In this episode ACF hosts interview Dr. Ursula Schmidt on treating fraud as fundamentally a human problem, not just a controls issue. Schmidt stresses that intentional concealment and the paradox of trust complicate prevention—too little trust suppresses reporting, too much creates opportunity for abuse. She urges organizations to reframe reporting as rewarded, reduce biological and cultural barriers to whistleblowing, and strengthen tone at the top so leaders receive full, unfiltered information. The conversation ties culture, character and board-level transparency directly to the effectiveness of fraud risk programs.

Original Description

In this episode of Fraud Talk, Ursula Schmidt, Ph.D., CCEP-I, founder of Schmidt Advisory and a former executive vice president of audit and compliance, joins the show to explore how culture, communication and human behavior shape effective fraud risk management.

Drawing on her global experience in internal audit and compliance, Dr. Schmidt explains why fraud is fundamentally a human problem, the importance of clear ownership of fraud risk, and why organizations must move beyond checklists and controls to address trust, transparency and accountability through honest communication and expectations.

Also in this episode, ACFE Chief Training Officer Andi McNeal, CFE, CPA, answers questions about the human element of fraud risk management and the value that tone-at-the-top culture brings to ensure all layers of an organization work together to improve prevention and detection.

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