Fraud Detection Red Flags

Fraud: Corporate fraud, employee theft, insurance scams/workers compensation fraud, employer fraud, forgery/falsified documents and even money laundering. Nobody likes to think it’s happening in their company, and yet global fraud studies by the Association of Certified Fraud Examiners (ACFE) estimate a median of 5% of revenue is lost every year due to fraud. While the ACFE found that both large and small organizations fall victim to occupational and workplace fraud, employee theft and financial fraud are especially detrimental to businesses with less than 100 employees.

One reason for this might be that larger companies have the resources and personnel for anti-fraud practices like forensic accounting processes, employee fraud and ethics training, internal department audits, corporate risk controls, and fraud prevention whistleblower hotlines. It’s important to note that fraud can come from a wide variety of sources and may be difficult to detect or predict without proper anti-fraud regulations in place. Therefore, it’s important to have an excellent fraud detection guide on hand and a great place to begin is KnowledgeLeader's Fraud Detection Guide.

Remember, the longer fraud lasts, the more damage it does—not just financially, but also in indirect costs, such as low employee morale and trust, tarnished brand images, decreased productivity and even ruined reputations. Begin your anti-fraud implementation right away to reduce risk.

For other related items, check the following topics on KnowledgeLeader:

Anti-Money Laundering
Electronic Discovery
Ethics
Foreign Corrupt Practices Act
Fraud
Investigations/Forensics
Whistleblower/Complaint Reporting
Corporate Governance