Prevent Financial Fraud at Your Organization
As a team of investigators who have received extensive training at the best organizations in the world, we have encountered a variety of different types of fraud at many different types of organizations. Regardless of the type of fraud, however, one thing remains the same – it causes government agencies, non-profits, financial entities and businesses to experience major financial setbacks and embarrassment.
Check out the following statistics according to studies conducted by the Certified Fraud Examiners (ACFE):
- The median loss due to business fraud was $125,000
- More than 10% of fraud occurs within non-profit agencies, and 18.7% of fraud happens to governmental agencies.
- 66% of frauds were committed by individuals from one of six departments (accounting, operations, sales, management, purchasing, and customer service).
The Perry Forensic team is on a mission to prevent you from becoming another alarming statistic, which is why we have provided our best tips on preventing financial fraud at your organization.
Don’t Leave 100% of the Accounting Duties to One Person
Regardless of organization type, it is highly recommended that multiple people share accounting duties because this encourages employees to hold each other responsible for any suspicious activity. Implementing a system of checks and balances and separation of duties limits the opportunity for fraud. Outsourcing some of your accounting needs to a firm such as Perry & Associates CPAs is a great way to ensure a highly respected team of financial experts keeps your sensitive financial information safe and secure.
Conduct Regular Audits
Consistent audits are an effective way to identify risks, detect irregularities and ensure employees are following established internal controls that protect your organization from threats. It allows you to review your company’s policies and procedures and determine if changes should be made to safeguard your company. With all organizations, it has been proven that audits can be most effective if they are not routine, but unplanned, as it prevents anyone in the middle of fraud or a scam from covering their tracks.
Establish a Culture of Ethics and Integrity
While this may seem obvious, sometimes everyone needs to be reminded about fair employment practices and organizations need to stress the importance of integrity, honesty and transparency in all financial dealings. Encourage team members to speak up if they suspect any financial wrongdoing or have concerns about current financial practices. Better yet, establish a fraud policy and code of conduct that makes all protocols, procedures and potential consequences very clear.
Establish Updated Cybersecurity Measures
In our current digital age, every type of organization needs to implement new security measures such as two-factor authentication, encryption, ID management and more. This goes a long way in protecting sensitive information and reducing data breaches.
And remember, if you notice the following taking place at your business:
- Unusual cash transactions
- Mismatched payees
- Strange, out of character emails
- Questionable activity from those who have access to assets
- Suspicious looking documents
- High travel reimbursement costs
- Mishandling of donations or grant funds
- Missing inventory
It’s time to call Perry Forensic and identify the source of error or wrongdoing. With forensic services that range from litigation support, whistleblower allegations, embezzlement, money laundering, hidden assets, ponzi schemes and more, we can immediately, discreetly and comprehensively find ways to protect your organization and give you the upper hand.