A guide aimed at helping businesses prevent fraud by employees, as well as offering tips to head off identity theft, was released last week by the Cayman Islands Chamber of Commerce.
The 46-page booklet called Beating Fraud: a guide dedicated to preventing and planning against fraud, also adds advice on methods for preventing robbery and theft, business banking fraud prevention, how to spot counterfeit bills, and how to make contingency plans in case fraud occurs.
Chamber of Commerce President Angelyn Hernandez said the booklet represents the first time Cayman has pulled all the key elements in preventing and detecting fraud pulled together in one comprehensive guide.
‘Over 42 per cent of fraud victims never reclaim their losses, so it is imperative that everyone safeguards themselves against fraud,’ said Ms Hernandez.
Here are some facts about business fraud, detailed in a 2006 study conducted by the Association of Certified Fraud Examiners:
*5 per cent of corporate revenue was lost as a result of fraud. Applied to the US Gross Domestic Product, this extrapolates to losses of approximately US $652 billion.
*Small businesses are the most vulnerable. The average scheme in a small business caused U.S. $190,000 in losses.
*On average, fraud schemes take 18 months to detect from the time they begin.
*30 per cent of all employee frauds are committed by people employed in accounting departments.
The guide was put together with the help of Deloitte Financial Advisory Services and the Royal Cayman Islands Police Service.
Copies can be obtained at the Chamber office, and are also posted for download on the Chamber’s website at www.caymanchamber.ky
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