As a business owner or entrepreneur how do you view fraud?
- As an inevitable part of modern life?
- Something which you can do little about?
- An inconvenience that only affects the ‘Big Boys’, not businesses like yours?
A report conducted by UK accountants PKF, “The Financial Cost of Fraud 2011” was the most comprehensive global study of its kind ever completed. Researchers discovered that across the private and public sector, 6.1% of expenditure is lost to fraud through activities such as healthcare, insurance, payroll, procurement and social security every year.
The report’s authors concluded (somewhat predictably) that businesses are exposed to a higher level of fraud during an economic downturn – fraudulent losses increased by around 33% during the last recession. They also recommended that taking a proactive approach to counteracting fraud as being the only practical way forward. In case you weren’t aware, data profiling software is a major ally in the war on fraud.
Jim Gee, the report’s co-author and Chair of the Centre of Counter Fraud Studies at University of Portsmouth, stated: “Given the challenging business environment, with the possibility of a double dip recession, organisations are advised to review and strengthen their protection against fraud. A small investment in better protection might prove to be particularly good value in the long run.”
It is clear from the evidence assembled for the report, that far too many companies are doing virtually nothing and certainly nowhere near enough to minimise the opportunities for fraudulent activities within their organisations. Either that, or they are denying that their businesses have been affected by fraud.
The first step to preventing fraud is to identify where there are weaknesses in your systems and then employ the latest technology software to counteract threats.
According to Jim Gee, “Fraud is now one of the great unreduced business costs.” Strange really, when so much of business is focussed upon becoming leaner, more productive, more competitive, yet something as potentially disruptive and destructive as fraud seems to creep under the radar. Perhaps it because fraud as a whole is seen as being too hard to cope with – too overwhelming.
But it is only by adopting a strong anti-fraud stance now and by taking proactive steps to counteract the weaknesses in our operating systems which give rise to fraud in the first place, that we will begin to turn our fortunes around. Data profiling software could help your organisation reduce the opportunities for fraud to impact on your business.
- As an inevitable part of modern life?
- Something which you can do little about?
- An inconvenience that only affects the ‘Big Boys’, not businesses like yours?
A report conducted by UK accountants PKF, “The Financial Cost of Fraud 2011” was the most comprehensive global study of its kind ever completed. Researchers discovered that across the private and public sector, 6.1% of expenditure is lost to fraud through activities such as healthcare, insurance, payroll, procurement and social security every year.
The report’s authors concluded (somewhat predictably) that businesses are exposed to a higher level of fraud during an economic downturn – fraudulent losses increased by around 33% during the last recession. They also recommended that taking a proactive approach to counteracting fraud as being the only practical way forward. In case you weren’t aware, data profiling software is a major ally in the war on fraud.
Jim Gee, the report’s co-author and Chair of the Centre of Counter Fraud Studies at University of Portsmouth, stated: “Given the challenging business environment, with the possibility of a double dip recession, organisations are advised to review and strengthen their protection against fraud. A small investment in better protection might prove to be particularly good value in the long run.”
It is clear from the evidence assembled for the report, that far too many companies are doing virtually nothing and certainly nowhere near enough to minimise the opportunities for fraudulent activities within their organisations. Either that, or they are denying that their businesses have been affected by fraud.
The first step to preventing fraud is to identify where there are weaknesses in your systems and then employ the latest technology software to counteract threats.
According to Jim Gee, “Fraud is now one of the great unreduced business costs.” Strange really, when so much of business is focussed upon becoming leaner, more productive, more competitive, yet something as potentially disruptive and destructive as fraud seems to creep under the radar. Perhaps it because fraud as a whole is seen as being too hard to cope with – too overwhelming.
But it is only by adopting a strong anti-fraud stance now and by taking proactive steps to counteract the weaknesses in our operating systems which give rise to fraud in the first place, that we will begin to turn our fortunes around. Data profiling software could help your organisation reduce the opportunities for fraud to impact on your business.
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