Knowledge is power
Every business, regardless of size or industry, is at risk of fraud. In fact, according to the Association of Certified Fraud Examiners (ACFE), the average organization loses five percent of its revenue annually to fraud—amounting to a median loss of USD $130,000 per case.1 This type of criminal activity not only takes a tremendous toll on a company’s bottom line, it can dramatically impact overall culture, reputation and the continuity of the business.
A closer look
Since a fraudster’s only limit is his or her imagination, it’s impossible to protect your company from every type of fraudulent act or predict accurately how fraud typologies will morph in the future. That said, raising the level of fraud awareness within your organization can help you identify risky behaviour down the road.
Broadly speaking, you need to be aware on both the external and internal fronts, as businesses are vulnerable to fraudsters both outside and from within. Below, we explore a number of common fraud trends and scenarios that can occur both externally and internally.