The Effects of Fraud

Fraud and corruption can affect organisations of any shape and size, and also in any industry. From low scale fraud by employees through to long term fraud on massive scales, organisations are at risk if they don’t consider the risk of fraud and how to protect theirselves. There are many misconceptions by companies surrounding this activity and its effects.

Some common misconceptions of fraud are as follows:

I would know if fraud were to occur in our company… Can you be sure that it is not happening in your organisation? Do you have a counter fraud strategy which is fully implemented? 

If I were a victim, I would discover it very quickly… Many companies do not have proactive safeguards in place and may not be aware of the fraud risks they face. 

My staff would not commit fraud… The vast majority of staff are honest, law abiding citizens but studies show that staff are involved in over a third of all frauds 

So what can you do? Deter – First know your risks and try to deter those who may wish commit this activity – knowledge of the threat is half the battle to victory. Detect – But even with the best deterrence processes in place, fraud could still occur so you must have the right procedures in place to detect fraud. Disrupt – Finally if you find illegal activity, what is your company policy on sanctions and is this disseminated to all, which in itself is a deterrence. In simple straightforward terms, treat fraud as any other risk. Because if you do not, you will become a victim. If you would like to explore how you can better protect yourself and your company then feel free to contact our office.