Blog / Palette
Top 6 Action Steps to Detect and Prevent Payments Fraud
Exposing fraud across purchase to pay (P2P) functions
The Association of Certified Fraud Examiners (ACFE) found that occupational fraud (using one’s occupation for personal gain) cost businesses over $7 billion in just 21-months.
At an average of $130,000 per case and an elapsed time of 16 months before a scheme is discovered, an estimated 50% of fraud cases can be directly attributed to a lack of internal controls.
This highlights the need for businesses to increase focus on protecting their bottom line by implementing and maintaining controls – especially during periods of rapid economic growth where oversight of indirect spend tends to be less rigid.
According to the ACFE, small businesses lose—for each case—almost twice as much to fraud as do large companies, at a median loss of $200,000 per incident.
Employees who have been with their company for more than five years tend to defraud them of twice the amount as employees with less than five years’ tenure.
Since the fear of bad publicity often prevents companies from pressing charges, the majority of these businesses rarely—if ever—recoup
See our whitepaper on the subject:
Top 6 Action Steps to Reduce Payments Fraud