CIMA’s report investigates how despite the serious risk that fraud presents to business, many organisations still do not have formal systems and procedures in place to prevent, detect and respond to fraud. While no system is completely foolproof, there are steps which can be taken to deter fraud and make it much less attractive to commit.
The survey highlights that:
• Organisations may be losing as much as 7% of their annual turnover as a result of fraud
• Corruption is estimated to cost the global economy about $1.5 trillion each year
• Only a small percentage of losses from fraud are recovered by organisations
• A high percentage of frauds are committed by senior management and executives
• Greed is one of the main motivators for committing fraud
• Fraudsters often work in the finance function
• Graud losses are not restricted to a particular sector or country
• The prevalence of fraud is increasing in emerging markets.