VideoDavid M. Katz, CFO.com | US
January 30, 2008
- Keeping up with Savvy Fraudsters...
Great overview on the article and the tie in to the current state of the economy.
As fraudulent suppliers and employees become more savvy in their approaches, it becomes more critical to evolve our fraud detection processes and technology. No more should we rely on spot-checks, sampling, or one-time supplier & employee verification during the setup process.
Recent corporate fraud and internal audit articles reflect that companies leading this area are now deploying tools that continuously monitor transactions, isolating patterns to detect fraud. These solutions are turn-key solutions, capable of applying algorithms against all suppliers, employees and invoices to deliver an actionable, prioritized risk ranking of suppliers and/or employees.
In addition, the Department of Justice Task Force on Procurement Fraud also identifies the regulatory responsibilities of companies to verify suppliers against global, government prohibited entity listings. These are the OFAC (SDN) terrorist listings, debarred listings, FBI, Interpol, global scam listing, etc that could result in penalties to companies doing business with the wrong person.
But how do companies build the ROI for continuous monitoring and justify their investments in fraud prevention?
With recent cases in the news, it appears that it takes an occurence of fraud before action is taken. Sounds a bit negligent but with budgets being potentially strapped in 2008, how do corporate fraud, procurement and accounts payable teams drive this need forward?Posted by Chris Siemasko | Feb 1, 2008 11:47 AM ET
