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6 Fraud

A challenge for PR crisis

management

Thom M Serafin (United States)

Introduction

Fraud is a fundamental challenge for PR crisis management and can
arise in different forms. The organization you represent may be
accused, fairly or unfairly, of having engaged in fraud, or your client
or organization can become the victim of fraud by a rival firm or
unscrupulous litigants. In either case, the reputation of the organiza-
tion is at stake until the public has made a judgement on your client’s
actions. Accusations of fraud strike to the heart of an organization’s
relationship with the public, and can present obstacles that must be
carefully navigated to restore credibility.
It is hard to overstate the damage to a company, governmental
agency or non-profit organization when the public begins to believe it
lacks basic integrity. In a relatively short span, fundamental trust, built
up over many years between an organization and those it serves, can
be seriously damaged. The morale within an organization and its
working partners can quickly erode. The perception of fraud also
carries the potential for legal problems from either regulatory agen-
cies or law enforcement, which is yet another reason why public rela-
tions crisis management must act decisively to either demonstrate that
the charge of fraud is unsubstantiated or, alternatively, that it is being
effectively addressed in a transparent way that will reassure the public
of the organization’s reliability.