A large percentage of companies continue to experience supply chain fraud and many of those may not be doing enough to address the problem, according to a new survey by Deloitte.

The consulting firm polled more than 2,600 professionals, finding that for a third consecutive year about 30% of them said their companies experienced supply chain fraud, waste or abuse in the past year.

Project managers and invoice approvers (26%) and procurement professionals (24.7%) present the largest risk of fraud, the survey found.

However, only 29.3% respondents use analytics to mitigate supply chain fraud and financial risks, with two-thirds (67.1 percent) saying they are confident employees will report any scams they see in the coming year.

“Trust in employees and third parties is often misplaced,” Mark Pearson, a Deloitte Advisory principal, said in a news release. “As a result, many organizations are trapped in a pay-and-chase model for fighting supply chain fraud —invoices are paid first, then retribution is sought much later when fraud is found, if it’s found at all.”

While 13.7% of respondents have analytics software for supply chain financial risk management, but don’t use it, another 19.3% don’t use analytics at all And only 27% of companies analyze unpaid invoices for evidence of supply chain fraud, waste and abuse prior to payment.

From 2014 to 2016, Deloitte said, life sciences, health care and energy industry professionals have reported the largest increases in fraud levels.

“From a life sciences and health care perspective, regulatory and legislative pressure is expected to heighten around pricing and transparency for plans, providers, and pharma and devices makers,” said Larry Kivett, a Deloitte Advisory partner. “It’s a good time to verify that your supply chain is not hiding any unsavory vendors or other fraud, waste and abuse that could cause reputational harm and costly remediation later.”

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One response to “Supply Chain Anti-Fraud Measures Lacking”

  1. This is where blockchain technologies will come into play. Look at the study done of Everledger using BigchainDB to discover supply chain fraud in the diamond industry.

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