How many companies have been hit by fraud over the past year?
According to a new report, 70% of companies have been hit by fraud, with the greatest increases coming from vendor or procurement scams.
The latest Global Fraud Report conducted by the Economist Intelligence Unit for Kroll Advisory Solutions highlights several insights:
- Greater vulnerability: According to the report, “…for six of the 11 types of fraud covered by the survey—corruption, money laundering, regulatory breach, misappropriation of company funds, IP theft and market collusion—the percentage of executives admitting that their firms are highly vulnerable to fraud was higher than the proportion of companies that have been hit in the past year.”
- Increased exposure to fraud: Of the 901 senior executives surveyed, “81% believe that their firm’s exposure to fraud has increased overall in the past 12 months, up from 63% in the previous survey. Respondents attribute this increase to the complexity of information technology (IT) infrastructure, high staff turnover and entry to new, riskier markets.”
- Insider threat: Employees continue to be a key source of fraud and of those employees, nearly a third came from senior or middle management.
- Information theft continues to affect companies: the second most common form of fraud, information theft is an issue for one in five companies.
- Global business models increase risks: globalization with the aim of tapping new markets and reducing costs requires working with suppliers and business partners that traverse the globe. Procurement fraud ‘saw the biggest increase compared with last year.”
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Reducing Your Risk
For companies interested in protecting IP and preventing corruption, CREATe.org offers two programs:
- CREATe Leading Practices for IP Protection
- CREATe Leading Practices for Anti-Corruption
Each three-step program:
- Helps companies and supply chain partners ‘measure and improve’ management systems for IP protection and anti-corruption
- Leverages learnings from quality, health and safety, and environment practices to implement systems to drive change
- Provides a practical, credible way to address IP protection and anti-corruption internally within your company and/or with supply chain and business partners
- Delivers practical steps to improve and mature a compliance program
For more information, please email info@CREATe.org
- IP Protection Policies: model policies your company should have in place
- Anti-Corruption Guidelines: an overview of international guidelines for anti-corruption