Something to Consider April 2018 3
Just as technology and automation continue to get more sophisticated, so too do those who commit fraud. Despite having automated controls in place, fraud continues to represent over $7 billion in losses annually.
The release of the latest ACFE Global Study on occupational fraud and abuse highlighted the key areas where issues arose. There were some interesting statistics shared.
- Internal control weaknesses were responsible for nearly half of reported fraud cases.
- The primary internal control weakness was a lack of controls, which represented the cause in 30% of cases.
- How is occupational fraud initially detected? 40% via a tip, Internal Audit found 15% of cases, and only 1% were detected by Internal Controls
- How much does occupational fraud cost the victim organisation? In 22% of cases, the loss represents $1 million or more.
- Accounting and purchasing departments are the common victims of fraud with a combined contribution of 20% of fraud cases.
- 11% of those who committed fraud were no longer with the organisation – highlighting issues in the joiners/movers/leavers process
The report goes into great detail about how fraud is currently affecting organisations across size, industry and geography.
We highly recommend giving it a read for some useful benchmarking as well as a fraud protection checklist.
You can find the report here
Our ‘Something To Consider’ snippets are framed as small, digestible, ‘dashes of insight’ around the pillars of what we define as “World Class Finance” – Process Optimization, Financial Control and Compliance, and Risk Assurance, all underpinned by technology enablement and integration.