Is Your Organization Protected from AP Fraud?
Between 2013 to 2015, tech-giants Google and Facebook wired more than $100M to a single individual who submitted fraudulent invoices. The incident became a perfect case in point defining the risks that companies, regardless of their size, scope and industry, are exposed to when it comes to security and fraudulent accounting practices.
With invoice processing being the closest touch-point to cash-flow within a company, it is no surprise that small and mid-sized organizations using manual accounts payable processes are at greater risk of becoming victims of occupational fraud and abuse.
Globally, occupational fraud and abuse cases reported a $7.1B US loss in 2018, as per the Association of Certified Fraud Examiners study of 2,690 cases. The same year, 82% of financial professionals in North America reported their organization experiencing attempted or successful payment frauds from occupational fraud and abuse; a 20% increase from 2014. Although staggering, these reported and known losses represent only a tiny fraction of the frauds committed against organizations worldwide.
The global rise in occupational fraud and abuse is related to the evolution of digital technology.
While digital technologies are transforming businesses and economies, creating a hotbed of innovation and growth, they are also making criminal activities more attainable than ever. With almost 80% of organizations introducing digital innovations, World Economic Forum considers cyberattacks and data fraud or theft to be two of the top five risks that CEOs are most likely to face.
Written By Catherine Dahl
February 13, 2020
January 21, 2020