A single fabricated story that slips thorough can be a people are flawed problem. 60 stories from a fraudster, discovered by a colleague who investigated on his own money, got no support from superiors and had to fear for his job. That, is an organizational problem.

> What do you suggest they should do to prevent this happening in future?

First step would be to admit that they have an institutional problem. Blaming a single individual and the "frailness of the world" is not a step in the right direction to prevent this from happening in the future.