Doug Betts, CFE, CPA, Inc.

Certified Fraud Examiner

Certified Public Accountant

Fraud Prevention Services

 

Companies that have active anti-fraud policies and procedures

in place reduce their losses to fraud by 30 to 48%--and every

dollar saved goes right to the bottom line.

 

 

Unfortunately, many companies have minimal or no measures in place to combat occupational fraud

and abuse. Ignoring the potential for fraud and depending on insurance and/or litigation to recover

fraud losses can be a costly mistake. Below are the loss and recovery results in the 2004 Report to

the Nation on Occupational Fraud and Abuse by the Association of Certified Fraud Examiners.  

 

   Missing: Microsoft Office Web Components
 
This page requires the Microsoft Office Web Components.

Click here to install Microsoft Office Web Components..

This page also requires Microsoft Internet Explorer 5.01 or higher.

Click here to install the latest Internet Explorer.
 

Those organizations that have basic anti-fraud procedures in place have significantly lower

losses to fraud than those without these measures as noted in the chart below. Interestingly

enough, those companies relying on an external audit to detect fraud may actually be at greater

risk. In the most recent study, those companies with external audits actually had greater losses

than those companies who did not have audits. This reinforces the fact that relying on an external

audit may be leading to a false sense of security.

 

The chart below illustrates the effect of utilizing certain anti-fraud measures. Clearly having a

fraud hotline in place has an impressive impact on reducing fraud losses - in this study, a 58%

decrease over those companies without an anonymous method for employees, vendors, and

customers to report suspected fraud. Those companies having an internal audit function also

reduced fraud losses significantly.

   Missing: Microsoft Office Web Components
 
This page requires the Microsoft Office Web Components.

Click here to install Microsoft Office Web Components..

This page also requires Microsoft Internet Explorer 5.01 or higher.

Click here to install the latest Internet Explorer.
 

 

Fraud Prevention Services

 

Fraud prevention services can vary widely from company to company and are customized to fit

the specific needs of the company. These can range from a quick 1/2 day Fraud QuickCheck to

a complete anti-fraud assessment and program development. Some of the individual services

include:

 

  • Fraud QuickCheck - an affordable, 1/2 day program to highlight potential fraud weaknesses

  • Fraud Vulnerability Assessment - an in-depth, customized assessment of the entire business environment

  • Fraud Hotline set up - establishing an anonymous tip-reporting mechanism - a proven fraud buster!

  • Code of Business Ethics and Conduct - a custom document developed for your company - your roadmap to preventing fraud

  • Full-blown Anti-Fraud Program development - direction for everyone from the Board of Directors to the rank and file employee.

Contact us today to see how custom fraud prevention services can help protect your company from fraud.

Email Newsletter icon, E-mail Newsletter icon, Email List icon, E-mail List icon Sign up for our Email Newsletter

Focus on Cash

Small to medium businesses with limited resources to combat fraud should focus tightening controls on cash-- incoming and especially outgoing. 

Not surprisingly, when employees steal company assets, cash is the target more than 90% of the time. Of the methods used to steal cash, nearly 75% of the time some form of disbursement scheme is used. The methods most often used (over 80%) are false billings (using fake vendor companies) or outright check tampering. 

Remember: It is always less costly for a company to prevent fraud than it is to deal with it after becoming a victim.


Copyright 2009 Doug Betts, CFE, CPA, Inc.  Home | Site Map | Contact Info