1888 Press Release - FDS Research released a report earlier this year highlighting Fraud Detection and Prevention techniques and one of the firm\'s Senior Portfolio Specialists has recently spoken on the matter.
Fraud, whether it occurs in the form of carefully crafted Ponzi scams, fudging financial reports or theft from one\'s own employer, is reaching alarming proportions and is not without its costs. Businesses and government agencies worldwide suffer hundreds of billions in lost or misused funds, diminished value, and irreversible damage to company reputation and customer trust.
Consider the shocking statistics from a report compiled by FDS Research earlier this year. According to the study, organizations worldwide lose an average of five percent of revenues to fraud annually, an average of approximately US $185,000. Making matters worse, many companies have been forced to cut staff, tighten spending and skip internal control processes, which has left organizations more vulnerable to risk of fraud.
Alexander Andersson, a Senior Portfolio Specialist at FDS Research, spoke about the report, \"The focus on fraud detection and prevention is shifting increasingly to internal audit departments. FDS Research findings report that although antifraud roles vary in business today, top management generally owns the antifraud responsibility, the audit committee oversees antifraud efforts, and internal audit provides a critical line of defense against the threat of fraud by focusing on risk monitoring in addition to fraud prevention and detection.\"
\"Fraud is a significant business risk that must be mitigated. A well-designed and implemented fraud detection system, based on the data analysis of operational systems, can significantly reduce the chance of fraud occurring within an organization. The sooner that indicators of fraud are available, the greater the chance that losses can be recovered and weaknesses can be addressed. The timely detection of fraud directly impacts the bottom line, reducing losses for an organization. Effective detection techniques serve as a deterrent to potential fraudsters - employees who know that experts are present and looking for fraud or that continuous monitoring is occurring, are less likely to commit fraud because of a greater perceived likelihood that they will be caught,\" he continued.
\"Given increased regulatory requirements and compliance demands, the decision is no longer if an organization should implement a complete fraud detection and prevention program, but rather how quickly that program can be put into place. The use of technology is essential for maximizing the efficiency and effectiveness of fraud detection and prevention.\" Concluded Mr Andersson.
Alexander Andersson is a Senior Portfolio Specialist at FDS Research and was speaking at a Fraud Prevention Conference held at the firm\'s headquarters in Singapore on Friday 12th August 2016.
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