Anti-fraud controls significantly reduce losses as threat of fraud rises
Press Release | 12th April 2016
Reading, UK — 12th April, 2016: As more companies fall victim to corporate fraud schemes, those with anti-fraud controls like continuous transaction monitoring can substantially limit the fallout, according to the latest report from the Association of Certified Fraud Examiners (ACFE).
The 2016 Report to the Nations on Occupational Fraud and Abuse found that fraud losses were up to 54% lower, and frauds were detected up to 50% more quickly, in companies with specific anti-fraud controls in place. These included data monitoring, management reviews, phone or internet fraud hotlines, training and job rotation. The most significant reduction in median losses (54%) came from companies that had proactive data monitoring and analysis controls in place, the ACFE Report found.
A large proportion of fraudulent activity goes undetected or unreported, but executives surveyed for the report estimate that organisations typically lose 5% of revenue to fraud. And the incidences are on the rise.
The number of companies that have fallen victim to fraud has increased 14% in the past three years, according to the annual Kroll Global Fraud Report. Three-quarters of companies polled had experienced a fraud incident within the past year, with theft of property the most common type of fraud at 22% and vendor fraud (also referred to as supplier or procurement fraud) a close second at 17%.
And while the incidences are high, the feeling of vulnerability is higher still. Almost half the companies polled felt vulnerable to the threat of fraud from their vendors or through the procurement process.
David Griffiths, CEO of FISCAL Technologies, the world-leading provider of accounts payable forensic software, commented: “The threat of fraud is a growing risk for companies. Regulation has brought compliance and risk management to the forefront of the business agenda, and companies must respond to their increased vulnerability to fraud.
“Anti-fraud controls are proven to detect, deter or diminish the effects of fraud and organisations should be actively implementing them. Forensic audit software, which monitors and analyses data, can identify actual incidences of fraud within the purchase-to-pay process, as well as areas of vulnerability where security needs to be improved.”
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About FISCAL Technologies:
FISCAL Technologies is the leading provider of forensic solutions that empower purchase-to-pay teams across the globe to protect organisational spend.
Incorporating unique technology to reduce risk in the supply chain, FISCAL solutions are used on a continuous, preventative basis to protect supplier spend, defend against fraud, increase profitability and drive process improvement.
Since 2003, FISCAL has safeguarded hundreds of millions of payments and is now relied on by over 250 leading organisations.
For more information, please visit www.fiscaltec.co.uk.
0845 680 1905