Fraud losses are down. Honest

News reports might lead many to guess that disgruntled employees, Internet-related vulnerabilities and a lack of security resources at cash-strapped companies might lead to an increase in losses from fraud. But one report shows minimal growth, with some fields actually seeing a decline in this type of theft.
Desperate times like these often cause many people, especially disgruntled employees, to turn to crime. But the Kroll Annual Global Fraud Report found that fraud-related losses so far in 2009 were relatively flat compared to recent years. Manufacturing companies saw a slight decline, as did technology companies.
Unfortunately, a key reason for this positive trend is that there isn’t as much money to steal. There are also fewer new ventures, where risk is often higher, among other reasons.
On the upside, Kroll said that efforts to reduce risk are paying off. Manufacturing companies have implemented more anti-fraud strategies than other industries. That includes doing more due diligence to examine vendors. These moves have helped reduced theft by former employees.
The report looks primarily at huge enterprises, but there are many tidbits that relate to smaller companies. For example, the manufacturing section compares two different approaches. A success story details a team that constantly monitored activities that could be linked to fraud. When issues were discovered, managers had a firm course of action with a well-defined timetable for responses.

In contrast, a failure had loosely-defined lines of communication, with no real plan for action once problems were discovered. Looking at another topics, a section examines the growing problem of counterfeiting in both a pharmaceuticals study and an item on Chinese fakes.
When money’s tight, it’s wise to figure out how to keep from losing it. Even wiser is to keep effective plans in place when things get better and there’s more money to lose.

Post a Comment

Required fields are marked *


%d bloggers like this: