Unsurprisingly, one of the reasons fraud has hit new heights may be that there has been a strong period of growth – and disruption. As rapid growth boosts the number of transactions a company handles, and disruption causes a certain amount of uncertainty, new opportunities to commit fraud arise.
Controls are often bypassed or overridden as current staff struggle to manage increased workloads, while new hires take advantage of lax recruitment practices put in place to fill positions quickly.
While only four percent of perpetrators have a prior fraud conviction, businesses may be infiltrated for the express purpose of conducting fraudulent activities.
Indirect spend, generally accounting for 15-27% of a company’s total revenue, is where the majority of occupational fraud takes place. The paper outlines six controls to reduce indirect procurement and payments fraud from going undetected.
The paper covers areas such as managing indirect spend, exposing fraud across purchase to pay functions, identifying attempts to conceal fraud, specific case studies and more. Proactive steps include automation, multi-level approvals, and intelligence gathering using AI.