Fraud is a global business and is, particularly since the global pandemic, the fastest-growing business on the planet, is booming | C&TM File. Companies have to accept that eliminating fraud completely is an impossible dream, but it can be minimized.

Understand the Basics of Fraud

Kroll’s 11th Annual edition of their “Global Fraud and Risk Report” * for 2019/20 showed that:

• The incidents that have significantly affected organizations in the last year were:
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• The key perpetrators of each type of threat were employees, contractors, and third parties:
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• Cybersecurity now needs to be integrated into an organization’s overall risk management strategy
• Also, the 2015 Kroll study showed that by far the Top Driver of Increased Fraud Exposure was high staff turnover.

Improve fraud prevention

Use these three techniques:

• using new technologies to bring user identification issues under control:  
  • ensuring global payment systems compliance by following Bellin’s five rules, see: https://www.coupa.com/blog/treasury/5-rules-corporate-fraud-management
• making people, not just companies, accountable, see Personal accountability and tighter fraud controls in wake of ‘Yates memo’ | C&TM File
• fighting payment fraud by adopting simple, practical solutions, see recent AFP Payments Security Guide - Trust, But Verify, see: https://www.afponline.org/docs/default-source/default-document-library/pub/2016-afp-payments-security-guide--bec.pdf?sfvrsn=2 AFP 

Minimize cyber fraud

Use these six techniques:

• adopting the 10 steps the UK’s spymaster (GCHQ) recommends, see:  10 steps to Cyber security from UK’s GCHQ | C&TM File
• accepting that your company needs a new approach, see: Corporates need alternative approach to cybersecurity | C&TM File
• beware of ransomware, see:  https://ctmfile.com/story/cybersecurity-coming-of-age
• stopping staff downloading data to personal devices and adopt these two practices, see: Key problem in Cyberspace: Staff downloading firm data to personal devices | C&TM File
• being aware that your supply chain could be your weakest link, see: Supply chains are the weakest link in cyber crime | C&TM File
• remembering that it is vital to build consumer trust in the new digital landscape, see: https://ctmfile.com/story/building-trust-in-a-digital-consumer-landscape-is-the-key-to-survival

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* For the 2019 Global Fraud and Risk Report, Kroll commissioned Forrester Consulting to conduct an online survey of 588 senior executives who have responsibility for, or significant involvement in, determining their organization’s risk management strategies. Survey respondents were drawn from the 13 countries and regions and 10 industries listed in the report’s table