• How to find your in-house fraudster


          How to find your in-house fraudster

          How to find your in-house fraudster

          If you're worried about security, you may need to look closer to home. Here, Advanced Business Solutions provides the top ten tips it believes will help prevent staff fraud

          UK businesses have never been more susceptible to insider fraud, as highlighted by
          the latest CIFAS Staff Fraud Database. This has revealed a 43 per cent overall increase in the number of staff frauds recorded in 2012 when compared with the previous year.

          To help businesses detect and prevent insider fraud, Simon Fowler, Managing Director of Advanced Business Solutions (Commercial Division), provides the following top ten tips.

          1. Assess the risks in your organisation
          Do a 'fraud audit' to determine which areas of your business are most and least susceptible to internal fraud. This audit could cover history of internal fraud in the organisation, the fraud detection and prevention processes in place, which technologies are in use and their level of effectiveness for managing risk.

          2. Know your potential fraudster
          Research by KPMG has identified that the typical inside fraudster is a 36 to 45 year old male in a senior management position who works in the finance function (or in a finance-related role) and who has been with the company for more than ten years. Obviously, staff who fit this profile should not be put under surveillance, however understanding the profile of a typical fraudster may encourage a re-think of the organisation's processes and the level of control/power certain individuals possess.

          3. Introduce a zero tolerance culture
          Place the topic of fraud high on the company's agenda, make it an openly discussed topic and ensure staff are aware that the company has a zero tolerance attitude to fraudulent behaviour.

          4. Review and improve procurement processes
          How easy would it be for a member of staff to create a bogus supplier and to raise invoices against them? Would a supplier's new bank account details be investigated? Procurement process reviews need to take place on an annual basis to safeguard against the risk of fraud.

          5. Implement technologies that provide fraud alerts
          To help identify and prevent fraudulent activities, organisations need to be supported by effective technologies that can alert management to any unusual behaviours. For instance, Advanced's Forensix solution is used by finance teams to detect a range of potentially fraudulent activities such as write-offs, discounts and employees making unusual financial arrangements with external suppliers. Any suspicious activities are then automatically flagged for the attention of management.

          6. Manage suppliers carefully
          Having fewer suppliers can reduce the likelihood of insider fraud and so aim for a trusted shortlist of suppliers. Start by looking at inactive or ad hoc suppliers and then review supplier arrangements before implementing a strategy to deal with how the organisation's suppliers are approved and then subsequently managed.

          7. Consider electronic document management
          Documents should be stored electronically using reputable document management solutions to eliminate the risk of paper documents being tampered with, 'lost' or shredded to suit a perpetrator's end needs. When documents are stored electronically, an audit trail of who has opened each document, when they opened it and what they have done with the document is also recorded, providing a further layer of security.

          8. Automate expenses management
          How easy would it be for a member of staff to make a false expenses claim? Implementing a software system that automates the approval and management of expenses is key for fraud prevention. This system needs to include safeguards to ensure staff can't make large or unusual claims without checks being made. It also needs to ensure that the company's expenses policy is being adhered to.

          9. Integrate your IT systems
          A fraudster will take advantage of loopholes in your systems and processes. Organisations that run a number of standalone systems that operate in isolation of one another will be at greater risk of fraud compared with an organisation that operates an integrated IT platform where one version of the truth is provided.

          10. Carry out regular fraud reviews
          It is important to continue to review the organisation's fraud prevention measures and technologies.

          Book in annual fraud reviews and consider carrying out role play scenarios to see how easy it would be for a member of staff to carryout fraudulent activities.

          Many organisations are failing to address the real issue of insider fraud and so it remains the 'elephant in the room'. This is despite the number of insider fraud cases increasing considerably in 2012. It's therefore vital for organisations to put measures and technologies in place to safeguard themselves, sooner rather than later!

          Some more background on Advanced Business Solutions
          Advanced provides leading integrated business applications and services that enable public, private and third sector organisations to retain control, improve visibility and gain efficiencies whilst continually improving corporate performance. It prides itself on getting close to its customers by understanding their businesses and responding to their evolving needs.

          Advanced's software systems comprise core accounting/financial management, procurement, supply chain management, human resource and payroll systems, integrated with a range of collaborative, document management and business intelligence solutions to extend the value and effectiveness of the finance, human resource and payroll departments. These can be delivered as a managed or bureau service.

          Customers are from both the public and private sectors and include Companies House, Newcastle City Council, WH Smith, Royal Bank of Scotland, Aer Lingus, National Express Group, DFS, RSPB and Great Ormond Street Hospital for Children NHS Trust.
          Advanced Business Solutions is a division of Advanced Computer Software Group plc, a leading supplier of software and IT services to the health, care and business services sectors.


        • Stay up to date - Click here and register for FREE Channel Info online membership and enjoy unlimited access to a host of benefits including the exclusive members area of the website, downloadable business tools, current and back issues archive, priority breaking news alerts, weekly e news summary and the Channel Info app

        • Related Articles

        • UK channel optimistic about year ahead

          UK channel optimistic about year ahead

          Tuesday 23rd Feb 2021
          Nuvias Group has announced findings from its partner research, revealing 2021’s biggest challenges and opportunities in the Channel. The majority of channel partner respondents expect significant growth in 2021, cybersecurity to be key to ...Read More...
          TalkTalk Business whitepaper to help partners address hybrid working

          TalkTalk Business whitepaper to help partners address hybrid working

          Thursday 18th Feb 2021
          TalkTalk Business has announced the launch of its Homeworker Whitepaper, which investigates the impact on the nation’s ability to adapt to the mass shift to hybrid working and how to maintain staff well-being. TalkTalk Business commi...Read More...
          Safer Internet Day: The key is a layered cybersecurity approach

          Safer Internet Day: The key is a layered cybersecurity approach

          Tuesday 9th Feb 2021
          Today (9th February) is Safer Internet Day 2021, a day which encourages the public to educate and make themselves more aware of the risks that come from being online. Everyone has their own part to play in making the internet a better place, whi...Read More...
                • About Us

                  Channel Info is the leading source of business news and information for the office dealer and reseller market. Our multi-platform approach delivers relevant, engaging and focussed content via our main printed magazine, supplements, website, digital editions, apps, newsletters and bespoke communications with an unrivalled reach across the industry. A highly trusted and respected brand for many years, the team behind Channel Info has over 60 years experience collectively in the office products, furniture, equipment and technology markets Channel Info continues to develop and adapt in order to meet the changing information needs of its readers.

                  For our latest Media packs and more details on our range of services click here

                • View Latest Issue