Palette Software has published a whitepaper on how enterprises can reduce payments fraud in times of growth — and disruption.
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Palette Software has published a whitepaper on how enterprises can prevent payments fraud. Despite organizations recognizing the threat and actively implementing controls to reduce payments fraud, tactics are becoming more sophisticated and success more frequent.
The paper outlines 6 proactive steps organizations can make to reduce payments fraud in their organization.
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 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.
This highlights the need for businesses to increase focus on protecting their bottom line by implementing and maintaining controls – especially during periods where oversight of indirect spend tends to be less rigid.
“Organizations can be proactive in this area,” said Michael Cichy, Palette Software, “by controlling indirect spending, automating data capture, implementing approval workflows, enhancing the audit process and using data analytics to detect patterns.”
Frauds detected using proactive IT controls tend to last five months with average losses of only $39,000, while schemes that went undetected jumped to almost $1 million at the two-year mark.
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. It covers areas such as managing indirect spend, exposing fraud across purchase to pay functions, identifying attempts to conceal fraud, specific case studies and more.
The whitepaper, Top 6 Action Steps to Reduce Payments Fraud, is available for download:
https://www.palettesoftware.com/whitepaper/top-6-action-steps-to-reduce-payments-fraud/
Contact Info:
Name: Michael Cichy
Email: Send Email
Organization: Palette Software Inc.
Address: 330 North Wabash Ave. 23rd Floor, Chicago, Illinois 60611, United States
Phone: +1-508-341-8101
Website: https://www.palettesoftware.com
Source: PressCable
Release ID: 88956752
