Fraud is hard to detect because it's usually invisible, hard to stop and difficult to prosecute. Much of it is the result of weak business controls and a lack of expectation that it will happen.
Most managers are far too trusting. They expect their staff and colleagues to be honest and incidents to have a visible impact. But that's not generally the case. There's an old maxim that states that if you take any four people, one will be an out-and-out crook, one will be honest to the point of stupidity, and the other two will take a risk assessment to see what they can get away with.
Fraud can continue for long periods of time without detection. In the late 80's the Oil Industry was shocked to discover that networks of so-called "illegal information brokers" had for many years been illegally manipulating major procurement contracts. It's a fair assumption that most industry sectors face similar issues, that either haven't come to light or worse, have been recognized but management has decided that they are simply too difficult and expensive to address.
Who are the people who commit fraud? Well, fraudsters come in all shapes and sizes; bank mangers who rob banks, company directors who steal from companies, the office worker using postage stamps for private mail. The lesson to be learned is that it could be absolutely anyone.
After reading this you might be inclined to view your colleagues with new eyes.
BfraudAware offers e-training modules which are cost-effective and deal with internal and external fraud awareness. They are easily tailored to your organisation’s needs and policies and raise the standard of awareness amongst staff at all levels.
We also offer training in traditional, class-room format and, for a small annual subscription, regular information to help you and your staff remain up-to-date. We also provide consulting and support in the event that you do fall victim to fraud.