The financial services industry and the fight against fraud
The ACFE recently published their 2018 report on global fraud and abuse in the workplace, and the findings are eye-opening. With losses from occupational fraud totaling $7 billion last year, organizations worldwide are faced with finding ways to not only combat this behavior, but to recoup losses. The study shows that no industry has gone untouched, and financial services and insurance organizations in particular are feeling the impact of these schemes. However, there are steps companies can take to protect themselves, and by understanding the facts, you can form a plan that will help you tackle fraud head on.
Financial services industry standings
Where does the financial services industry stand when it comes to occupational fraud? Here are a few interesting facts from the report:
- The median loss on reported fraud was $153,000 for insurance, and $110,000 for financial services organizations.
- The most common occupational fraud schemes for banking and finance were corruption (36%) and cash on hand (23%), whereas insurance experience more instances of corruption (45%) and billing (20%).
- The greatest number of fraud cases occurred in the banking and financial services, along with manufacturing, and government and public administration sectors.
Data visibility and analysis is key
In an industry that is highly regulated and under strict scrutiny, compliance is key. So what is the best way for a financial service company to control fraud? The key is in data visibility.
The ACFE report found that companies with internal anti-fraud controls had lower instances of fraud. In particular, those organizations that were proactive with data monitoring and analysis brought the largest reductions in fraud loss, with 52% lower losses and 58% faster detection. Surprise audits also brought similar results.
Read the full report
The ACFE report goes in depth to discuss more interesting and helpful information surrounding occupational fraud, including detection methods and data surrounding perpetrators. Download your copy of The Report to the Nations: 2018 Global Study on Occupational Fraud and Abuse, to learn more about the AFCE’s findings and what this means for your organization. Once educated, you can develop an internal plan that will help combat fraud and abuse in your organization.