Consumer behaviour is changing, fuelled by the digital era, and economies are recovering. Meanwhile, fraud statistics are back on the rise, along with the costs involved in managing it. Losses to fraud around the world amount to £2.91 trillion a year*. In 2014 that equated to an average 1.4 percent of revenues, an increase from 0.9 percent in 2013**.
Fraud is a widespread and complex problem. Targeting weaknesses and inconsistencies and thriving on uncertainty and complexity, its effects can be devastating – threatening your business processes, eroding the integrity of your employees, and tarnishing your reputation. Developing a strategic response to fraud can put you back in control and enable you to protect your customers.
One of the keys to successful fraud risk control is to clearly define the activities, processes, roles and responsibilities that will collectively inhibit and restrict the fraudster.
In this paper, we consider the core fraud risk control capabilities that organisations need to develop in order to effectively counter fraud and its damaging effects, and thereby create a strategic response to fraud.
*BDO Financial Cost of Fraud Survey, 2013
** Kroll Global Fraud report 2014