Protection against cyber attacks and fraud is usually at the center of organizations’ risk management attention. However, as PwC’s 2022 survey shows, over 30% of economic crimes (read – losses to companies and organizations) are perpetrated internally: “Where an organization’s most disruptive fraud derived from misconduct risks, it was significantly more likely to be caused by internal perpetrators in comparison to cyber risks (35% vs. 16%)” – PwC’s Global Economic Crime and Fraud Survey 2022.
A great percentage of survey participants indicated that they recognize and support the need to strengthen “internal controls, technical capabilities and reporting to prevent and detect fraud.”
In their “Occupational Fraud 2022” report, ACFE (Association of Certified Fraud Examiners) states that organizations lose approximately 5% of their revenue to fraud each year. In total, over $4.7 trillion were lost to fraud in one year (2021). The median loss per case is $117,000.
Asset misappropriation is listed by ACFE as the major “contributor” to internal (or occupational) fraud (86%), followed by corruption (50%) and financial statement fraud (9%)… or combination of the above.
There are lots of ways in which occupational fraud may be committed: check and payment tampering, billing, noncash, skimming, cash larceny, payroll, expense reimbursements, register disbursements, cash on hand… the list is long.
Besides, there is always a place for genuine human error that may lead to considerable losses to the company. A simple extra “zero” at the end of a transferred amount…
The use of innovative sophisticated technology may considerably mitigate the threats posed by internal fraud and/or unintentional mistakes.
DETELIX’ platform – a corporate grade solution for preventing outflow of funds that occurs due to mistakes or internal fraud is an “all-in-one” solution for detection of losses. It helps prevent them by providing timely quality alerts on possible inconsistencies and irregularities in the flow of organizational funds.
Detelix Financial Leaks Detection solution detects anomalies in real time, eliminates manual processes saving time and preventing human error, considerably mitigates workload, perfects the ongoing monitoring, and stops leaks before they happen.
DETELIX – THE INDUSTRY LEADING FINANCIAL LEAKS PREVENTION SOLUTION
