As fraudsters continue to perpetrate fraud and losses continue to grow, it is no longer a question of if fraud will occur, but rather when it will occur at an organization. According to the Association of Certified Fraud Examiners (ACFE), a typical organization loses 5% of its revenue annually due to fraud. Is your organization ready to respond to a fraud event? When fraud is suspected or confirmed as occurring, it can be a very chaotic time, so having an established plan can reduce some of the stress and confusion typically associated with fraud.
As part of a layered anti-fraud approach, developing a response plan may often be neglected because organizations don’t want to accept that fraud may occur. While the best way to mitigate fraud is to have strong internal controls specific to your organization, having a response plan is also a priority. The following are some considerations when developing a fraud response plan:
While no one wants fraud to happen, having a fraud response plan will position your organization to take immediate action to address fraud when it occurs.
Do you need assistance evaluating your fraud risks and corresponding response plans? P&N has a depth of resources to help prevent, investigate, and analyze fraud perpetration. Contact us today to find out how we can assist.