Six Signs your Procure-to-Pay is at Risk for Fraud
If you are a CFO, a Controller, or a Head of Finance, Shared Services, or Accounts Payable, and if you are concerned about reducing the risk of fraud, then don't miss this White Paper by Tasha Bailey, which provides real-world examples of global fraud, statistics on the occurrence of fraud, and tips for identifying fraud. It also describes what you can do to reduce your risk.
The Corporate Fraud Epidemic: The impact of fraud on today’s businesses and organizations is staggering. Just take a look at these examples pulled from recent headlines.
- The former head of digital fraud and security for the international Lloyds Banking Group was charged with defrauding his company of more than £2.5million by creating false invoices and pocketing the income.
- Two employees of the U.S. Army Corps of Engineers pled guilty to a scam involving $30 million in payments made to bogus companies they created.
- Authorities in China arrested 18 people in a crackdown on an alleged invoice forgery ring; they confiscated more than 2.5 million fake invoices.
The activities of such fraudsters can be tough to detect – especially by companies with far-reaching global operations and multiple shared services centers. In its "2012 Report to the Nations," the Association of Certified Fraud Examiners (ACFE) says the typical organization loses 5% of its revenues to fraud each year – an estimated $3.5 trillion dollars industry-wide.
Most scams last about 18 months before being detected, and only about 1% of them are uncovered via IT controls. What’s more, almost half the organizations that fall victim to fraud fail to recover their losses.
Nowhere is the risk greater than in the procure-to-pay cycle, which represents the largest annual outlay for most companies. Fraudsters simply follow the money.
Download the White Paper and find out how to recognize whether your processes are vulnerable to fraud.