Prevention, Detection, Deterrence, Examination
Fraud negatively impacts an organization in many ways; fraudulent activity can damage an organization’s reputation and undermine a company’s financial security. On its face, most individuals see the damage incurred by fraudulent activity measured in terms of monetary loss which, depending on the size of the fraud can be significant. However, the full cost of fraud is immeasurable in terms of time, productivity, and loss of reputation. Therefore, it is important for organizations to implement a “Fraud Program” that includes awareness, detection and prevention.
Combating fraud before it occurs is vital to the survival of any business. Organizations should take the opportunity to consider, enact and improve measures to detect, deter and prevent fraud before it occurs. A combined effort must be made by the board of directors, the audit committee, internal and external auditors, risk management personnel, investigators, operations personnel and others to manage the risk of fraud.
Prevention
Virtually every entity suffers from fraud, though management might not know it. With fraud costing entities an estimated 5 percent of their annual revenues, organizations lacking proactive fraud prevention measures are the most at risk. The professionals at the Ingenium Consulting Group will show you why traditional internal controls can be ineffective in preventing many frauds and how to combat fraud more effectively and economically. We can show you leading techniques to manage the risk of fraud and cut its ongoing cost for all types of entities.
Detection
Fraud is a billion-dollar business and it is increasing every year. The PwC Global Economic Crime Survey of 2016 suggests that close to 36 percent of organizations worldwide have reported being victims of economic crime in the past year. Economic crime is ever-evolving, and becoming a more complex issue for organizations and economies. The regulatory landscape is also changing, bringing with it numerous challenges to doing business.
Fraud involves one or more persons who intentionally act secretly to deprive another of something of value, for their own benefit. Fraud is as old as humanity itself and can take an unlimited variety of different forms. However, in recent years, the development of new technologies has also provided further ways in which criminals may commit fraud. In addition to that, business re-engineering, reorganization or downsizing may weaken or eliminate control, while new information systems may present additional opportunities to commit fraud.
Fraud that involves cell phones, insurance claims, tax return claims, credit card transactions etc. represent significant problems for governments and businesses, but yet detecting and preventing fraud is not a simple task. Fraud is an adaptive crime, so it needs special methods of intelligent data analysis to detect and prevent it.
Our investigative teams at the Ingenium Consulting have the expertise to successfully complete these complex and time-consuming investigations that deal with different domains of knowledge like financial, economics, business practices and law often required to successfully solve this problem.
- Identify the point of loss
- Identify potential suspects
- Quantify the losses
- Work with attorneys, insurance companies, and other investigators to help you recover your losses.
Deterrence
Fraud is a significant business risk that must be mitigated. A well-designed and implemented fraud detection program, based on transactional data analysis of operational systems, can significantly reduce the chance of fraud occurring within an organization. The sooner that indicators of fraud are discovered, the greater the chance that losses can be recovered and control weaknesses can be addressed. 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.
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 experts at the Ingenium Consulting Group can help you institute a proactive program to combat fraud in your organization.
Examination
Every day, businesses around the world fall victim to fraud. Who commits these acts? Why do they do it? And how can organizations protect themselves? Understanding the motivations, methods, and warning signs of fraud is essential to safeguarding your business and minimizing risk.
Fraud examination is a specialized process used to investigate allegations of fraud from initial suspicion through resolution. This process involves gathering evidence, conducting interviews, preparing detailed reports, presenting findings, and assisting organizations with fraud detection and prevention efforts.
Detecting fraud is challenging because fraudsters continually develop new ways to bypass controls, policies, and procedures. Traditional audits are designed primarily to verify the accuracy of financial records and statements, not to uncover fraudulent activity. As a result, many fraud schemes can go undetected without targeted investigative procedures.
This is where experienced fraud investigators provide significant value. They employ specialized techniques to identify suspicious activity, uncover evidence, determine the scope of losses, and help organizations build strong cases when misconduct is discovered.
The professionals at Ingenium Consulting Group are dedicated to helping organizations prevent, detect, and respond to fraud. Our investigators possess extensive experience in fraud detection, forensic analysis, workplace investigations, financial reviews, and evidence gathering. Through continuous professional development and ongoing training, our team remains current with emerging fraud trends, investigative methodologies, and industry best practices.
As fraud schemes become increasingly sophisticated, organizations must stay ahead by implementing effective controls and utilizing proven investigative techniques. Our experienced fraud investigators continuously enhance their skills and knowledge to provide clients with the highest level of service and expertise.
If you would like assistance detecting, investigating, or preventing fraud within your organization, contact Ingenium Consulting Chicago for a free confidential consultation.