Mega Fraudsters Are Often NOT Held Responsible For Most of the Frauds.

The vast amount of fraud in most developed countries takes place from lots of people stealing more modest amounts from government and from large corporations. So whilst we may occasionally read about the $ multi-million losses perpetrated by individuals, this is comparatively rare.

There are many tens of thousands of people who steal $10 – $10,000 every day through false benefit applications, bogus grants, insurance claims, local authority claims, injury claims, stolen card usage and walking away from utility bills or internet orders. Oddly, the widespread deployment of IT systems to manage corporate fraud and corporate processes often makes business fraud easier, as fraudsters prefer such faceless processes to dealing with real people, thus making corporate fraud losses prevention difficult.

UKFraud is an independent fraud prevention organisation (under the leadership of Bill Trueman) which helps banks, corporates, insurance companies, telecommunication sector, and other organisations investigate, detect and prevent fraud to save millions.

When serious Corruption, Fraud or Illegal activities are exposed in Corporate or an organisation, should the Top Dog resign, even if they allege they were unaware of the offences?

Should Top Dogs Resign When any Scam or Fraud takes place in an Organization?

“Yes but not always…. life is never that simple! Even if the ‘top dog’ doesn’t set the fraud agenda, and has no prior knowledge of the corrupt or fraudulent practices, they still have to go as there is always an assumption of responsibility at the top. However, a good leader will make sure that their business team has fraud prevention tools, such as payment, audit and stock controls et. al. in place. Thus, the good leader should rarely see and experience such corruption or fraud. However. If the leader does not drive such disciplines into the business, then their leadership is poor AND he or she MUST go if that leadership comes under scrutiny when any business fraud or company fraud is discovered.

The biggest exception to this rule include; new leaders, who are trying to implement the right infrastructure, which will always take time to put in place. The judges in these cases must be independent non-executive directors, chairmen or shareholders; who should always also be in place in a supervisory oversight role.

Sometimes culpability stretches much further than ‘the one at the top’, and could include a broader base of stakeholders – shareholders etc  The Ministry of Defence might well see one of the causes for losing over £6bn as potentially the result of a very large company fraud, but we’d never hold the Queen liable…would we?”

UKFraud is an independent fraud prevention agency (under the leadership of Bill Trueman) working globally, which helps businesses, banks, corporates, insurance companies, telecom sector, ngo, and other organisations investigate, detect and prevent fraud(and corruption) in order to prevent losses and save millions.

How To Protect Your Company From Big Fraud Attacks?

1. Ensure that your IT people understand the technical risks and they know how to protect your business from attacks, theft of customer information and infiltration. Customer details and payment details are the most ‘at risk’ data; and that access security is the most important to the police.

2. Remember though that with the best systems in the world, one of the weakest points of vulnerability is always the people using the systems, as they can easily be mis-led or conned. Ensure that customers have strong advice and warnings of the dangers. Also make sure that staff cannot access sensitive areas of your systems without proper controls and whatever they do is stored and available for audit. Make sure, when recruiting, that the bad-eggs that can get into the fabric of organisations are properly screened out before you are at risk by employing them.

3. Look at your processes for weaknesses. These include: paper that need not be used, access to unnecessary customer data, who can access what and why people may need to access such details. Ensure that people have what they need to do their jobs, but no more.

4. Make sure that your anti-fraud efforts are not just ‘after the event’ investigation-led. Ensure that you set proper fraud deterrents and fraud prevention strategies, mechanism and system. You should consider deploying early fraud detection processes, systems, solutions and technology and that when you see a problem you take action to fix it properly and permanently.

5. And finally, if you employ a fraud management specialist, make sure that they have the ability to take action and change the business for the better.

Bill Trueman, CEO & Director of UKFraud and RiskSkill who helps businesses, banks, corporates, insurance firms, telecom sector, ngo, and other organisations investigate, detect and prevent fraud to prevent losses and save millions.

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