Fraud – The Invisible Enemy
Description:
Would you know if fraud was occurring in your organization? Do you know what the major fraud risks are in your business?
Do you have the use of any automated fraud detection techniques? If fraud is suspected do you have a clearly defined approach for managing the investigation?
If you have answered “NO” to any of the above questions, you are not alone.
Fraud is estimated to have cost the World Economy at least $ 4 days trillion (US) in 2010/11. The average organisation loses $10 per day (US) per employee to fraud and abuse (source association of fraud examiners). The true cost of fraud is much higher when you take into account impact on reputation, diversion of management attention and loss of trust within teams.
Many organisations assume that fraud is not happening in their business, as they have not uncovered any frauds 95% of organisations make no use at all of electronic information to detect fraud (Ernst and Young Study).
Most managers assume that having good controls in place will significantly reduce the risk of fraud – the reality is that as many fraudsters are senior personnel, they will know the controls and how to bypass them (however sophisticated you think they may be).
During the current economic crisis, fraud poses an even greater threat.
