December 19, 2017Share:
Being aware of fraud and ways to prevent it can determine your success or failure.
Common types of fraud:
• Misappropriation of Assets: When a trusted person steals or misuses the assets. Some ways assets are misappropriated include theft of money or services, check forgery, accounts receivable fraud, accounts payable fraud, payroll fraud, and stealing inventory.
• Financial Statement Fraud: Intentionally manipulating financial information for personal gain.
– Malware: code that typically steals data or destroys something on your computer.
– Ransomware: malicious software designed to block access to a computer system until you pay a ransom
– Phishing: when hackers attempt to gain information such as passwords or login info by posing as a trusted person
Ways to prevent fraud:
• Promote Awareness through fraud training and fraud risk assessment. Consider where fraud would likely be committed.
• Implement controls to eliminate the opportunity for fraud such as segregating duties, cross training employees, conducting an internal audit, and having someone who doesn’t have access to cash review bank statements and budget to actual reports.
• Have a Cyber Protection Plan – develop cyber policies and procedures that include things such as Firewalls, Virus Detection/Protection, and Backups. Also, consider getting cyber liability insurance. While it won’t prevent the fraud, it can help manage risk and provide protection against loss.
Wilkins Miller has experienced forensic accountants and IT professionals who have worked with businesses and individuals to evaluate questions regarding fraud or improper transactions. Give us a call – we have resources to help you achieve a lower risk of encountering fraud.