A fifth of organizations still fail to update fraud prevention processes
Financial fraud is still rampant among U.S. businesses, says a survey conducted by Kyriba. According to the survey, 78.4 percent of companies have been targeted for financial fraud, of which 29.9 percent had suffered financial losses as a result. Only one-in-12 companies has never been targeted for fraud, while almost one-in-seven finance professionals do not know if their company has been targeted.
Despite the ubiquity of attempted fraud, many organizations are still complacent in their fraud prevention strategy, and more than a third of companies haven’t reviewed it in the past year. Eighteen percent of companies have never reviewed their fraud prevention strategy.
“The level of attempted financial fraud within U.S. organizations is unfortunately not surprising given the lack of proactive efforts and controls implemented by corporate finance teams,” said Bob Stark, vice president of strategy at Kyriba. “Incidents such as the recent Heartbleed OpenSSL security flaw have clearly demonstrated how reactive companies are to address fraud prevention. Combining these external threats with the continued prevalence of fraud perpetrated from within, highlights how critical it is to implement the appropriate technology alongside financial controls within every organization.”
“There are almost 130,000 medium and large businesses across the U.S., so these statistics suggest that there 25,000 of them are completely unaware of whether they have been defrauded. It’s clearly time for companies to adopt a more hands-on approach to fraud prevention, and take a long, hard look at their levels of exposure,” added Stark.
The poll was conducted of 411 finance professionals, during a webinar hosted by Kyriba on April 10, 2014. Kyriba has developed a white paper in conjunction with the webinar, entitled "Leveraging Treasury Technology in the War Against Fraud." It can be downloaded from Kyriba’s website.
A full breakdown of answers is below.
Has your organization ever been the target of an attempted financial fraud?
Yes, and we suffered financial losses 29.9 percent
Yes, but we caught it before any damage was done 42.9 percent
Yes, but we don’t know if we suffered any losses 5.6 percent
No, we have never been targeted 7.8 percent
I don’t know 13.9 percent
When did you last review / update your fraud prevention processes?
Never, as far as I know 18.1 percent
More than five years ago 3.4 percent
Between one and five years ago 14.3 percent
Less than a year ago 21.8 percent
We’re constantly reviewing them 42.4 percent
An infographic of these statistics can be freely downloaded from Kyriba’s web site.