Food for thought

Fraud is something that every organization has to combat. Whether it is the theft of products, embezzlement, or deception, it happens, and you need a plan to prevent it. The following articles are just a few stories about reported occurrences of fraud. Are you at risk? Let us help you identify and strengthen your internal controls to prevent fraud before it occurs.
What are the financial risks to your organization of an ineffective or non-existent control system?
  • Controls that are improperly designed or ineffective are the most important contributing factor to fraud occuring!
  • "Average loss pegged at $600,000." Nonprofit Times - October 10, 2014
What would happen to your organization's reputation if fraudulent activity were to occur?
  • Allegations of fraud can lead to loss of funding or loss of standing in the community
Do you have long-term, trusted employees who handle all of your financial information and transactions?
  • Fraud perpetrators are usually someone you know and trust, since they have the opportunity to commit fraud!
  • Small organizations (less than 100 employees) are more likely the victims of fraud!
Have you conducted fraud awareness training for your employees?
  • In 92% of cases there were one or more red flags that the perpetrator displayed.
Do you have a means, such as a fraud hotline, for employees to anonymously report tips or concerns?
  • Fraud hotlines are the single most effective means of receiving tips leading to the detection of fraud.
  • Most organizations rely on external audits to identify fraud, but external audits uncover only about 3% of frauds!