What businesses do to increase their security and stability in relation
to fraud?

Is your company
protected from internal and external risks?

Today, there is a huge
loss of fraud in all global companies, in Kosovo fraud is at a very high level
and is due to the lack of proper controls.

Scams are valued at
billions of euros globally and many companies cost up to 7% of their spending

Companies are losing
on average 7% of their annual costs or costs against fraud, which now costs the
UK £ 110bn a year, while global costs have surpassed £ 3 trillion, according to
research by Crowe Clark Whitehill, along with the University of Portsmouth
Center for Studies Against Fraud (CCFS).

Have you ever measured
how much your losses could be for your company?

In a broad sense,
fraud can include any crime for profit that uses fraud as a way of acting for
personal gain. More specifically, fraud is defined as part of black law:

– Recognizing the misrepresentation of truth or concealing a material
fact to induce another to act to its detriment.

– Consequently, fraud involves any intentional or intentional act to
deprive another of property or money by fraud, fraud or other unjust means.

Fraud against a
company may be committed internally by employees, managers, officers or owners
of the company, or externally by customers, vendors and other parties. Other
schemes deceive individuals, rather than organizations.

Internal fraud

Internal fraud, also
called professional fraud, can be defined as “the use of a person’s
profession for personal enrichment through the intentional misuse or misuse of
an organization’s resources or assets.” Put simply, this type of fraud
occurs when an employee, or executive, commits fraud on his or her employer.

Although authors are
increasingly embracing technology and new approaches to engaging and concealing
occupational fraud schemes, the methodologies used in such frauds usually fall
into clear and time-tested categories.

External fraud

External fraud against
a company covers a wide range of schemes. Dishonest sellers may engage in bid
rigging schemes, bill for goods or services not offered, or solicit bribes from
employees. Likewise, dishonest customers may submit bad checks or fake payment
account information, or they may attempt to recover stolen or discounted
products for a refund. In addition, organizations also face threats of security
breaches and intellectual property theft committed by unknown third parties.
Other examples of fraud committed by external third parties include assault,
theft of proprietary information, tax fraud, bankruptcy fraud, insurance fraud,
healthcare fraud and credit fraud.

Fraud against individuals

Numerous fraudsters
have created schemes to deceive individuals. Identity theft, Ponzi schemes,
phishing schemes and advanced fee fraud are just some of the ways criminals
have found to steal money from victims who do not suspect.

Every time prevention
to protect against risks is the best solution by making the company structure,
assigning responsibilities and duties of each position, structuring all the
necessary units in the company and designing their procedures, policies,
controls and implementation. Many companies not only fail at the right design,
but also at implementation.

Accountants and
auditors are responsible for detecting and preventing fraud by evaluating
vulnerability accounting systems by designing and monitoring internal controls,
determining the degree of organizational fraud risk, interpreting financial
data for unusual trends, and tracking fraud indicators.

Audit Group LLC is
ready to support your business to properly design policies, procedures,
assignments and responsibilities and their controls and implementations in
order to increase company security, accuracy and control.

Broshura Nexia 2024

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