Tough times, corporate fraud

Corporate fraud is one aspect of the business world that is less talked about, yet typically 5 per cent of a company’s profit is lost to fraud each year, and that number is growing.

‘As the full impact of the credit crunch unfolds, conditions are becoming tougher for businesses and the risk of internal fraud has never been more evident,’ says Glenda Davidowski of Learning Solutions.

‘The reality is that fraudsters can, and do exist at all levels in an organisation.’

She points out a number of factors contribute to today’s level of significant corporate fraud. These include the growing complexity of organisations, understaffing, poor understanding of internal risk, computerization, poor internal controls and lack of training.

‘The good news is that it is possible to prevent fraud, or at least mitigate it, by enhancing internal controls such as staff awareness and education,’ she says.

‘Well-trained and vigilant employees are able to recognize deficiencies in controls and detect fraud; making it much harder for the fraudster to succeed.’

Recently, Allen Keele of Certified Information Security, a US-based firm offering training throughout the Caribbean recently held two fraud specific workshops, ‘Corporate Fraud Prevention & Detection’ and ‘Advanced Interviewing Techniques for Investigating Internal Fraud.’

Attendees got an in-depth look at what companies can do to prevent and detect fraud as well as investigative interview techniques used in resolving cases of internal fraud.

Ms. Davidowski says that it’s never too late to address this growing problem, and she was pleased that attendees spanned a wide range of sectors.

‘It’s a critical thing to be aware of and we are looking forward to helping out more organizations in Cayman with fraud prevention training over the coming months,’ she says.

For more information about upcoming courses on fraud prevention contact Glenda Davidowski of Learning Solutions Ltd. by email: [email protected] or (345) 916-8938.