Centsoft AP Automation has published a whitepaper entitled “6 Ways to Reduce Employee Fraud in a Booming Economy” that outlines proactive steps companies can take to avoid fraudulent payments – a growing problem that will only accelerate in economic good times.
Despite organizations recognizing the threat and actively implementing controls to reduce payments fraud, tactics are becoming more sophisticated and success more frequent.
Industry reports show that over 80 percent of financial professionals said their organizations were subject to fraudulent activity in the last few years.
Unsurprisingly, one of the reasons fraud has hit new heights may be that the economy is booming. As rapid growth boosts the number of transactions a company handles, 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.
“Organizations can be proactive in this area,” said Michael Cichy, Centsoft, “by controlling indirect spending, automating data capture, implementing approval workflows, enhancing the audit process and using data analytics to detect patterns.”
The whitepaper shows how 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.
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 whitepaper, 6 Ways To Reduce Employee Fraud In A Booming Economy, is available for download:
Centsoft, a subsidiary of Palette Software, offers robust and cloud-based software to streamline all of the steps in the accounts payable process. Centsoft’s AI learns and proactively suggests the best way to record and process invoices for fast and easy approval. Centsoft is a leading provider of SaaS solutions that automates the management of supplier invoices for over 3,000 companies. Centsoft quickly integrates with Quickbooks and Quickbooks Online.
Release ID: 88944133