IT-related fraud is the most reported type of vulnerability issue seen by enterprises of varying sizes across the globe in recent times.
On average, a United States organization is expected to face a loss of about five percent of its yearly growth to incidents of fraud. These statistics are undoubtedly alarming, and shareholders are taking an active interest in ensuring effective fraud management measures are undertaken.
According to statistics, about 70 percent of enterprises were affected by IT-related fraud attacks. Consequently, in 2022, organizations may have to prioritize fraud management and other security aspects.
As several enterprises expand around the globe to leverage the potential of emerging economies, they may face complex risks in terms of security. IT security is merely one among them, and fraud management assumes immense significance here. As a matter of fact, many enterprises had to face risks that they were unprepared for.
The pandemic-induced economic slowdown can make it extremely difficult for managers and executives to obtain planned objectives. Besides, the pandemic has made the organizational environment highly susceptible to fraud attacks.
Of late, plenty of incidents suggests that even enterprises with high-end security systems are equally susceptible to fraud attacks.
The basic fact about fraud management is that despite the prevalent tendency to deny such events, every enterprise is facing the issue in varying degrees.
There’s a tendency of denial among the top executives because the enterprise is losing a considerable amount of money due to fraud. Yet, these enterprises exhibit highly contradicting behaviour when there are full-fledged attempts to boost the firm’s YoY growth and to enhance shareholder value.
Read More: Covid-19 Data Breach at California Public Office Is Unearthed and Fixed
Also, higher officials are reeling under pressure to cut down the instances of fraud or bribery. They are being held accountable for incidents of fraud that happen directly or indirectly through them. There is constant monitoring that focuses on incidents of fraud that would have been avoided.
As with many other aspects, fraud management approaches need to be highly refined now. The essential technique is understanding entrepreneurial vulnerabilities and devising a highly apt framework to recognize and react to these existing and future vulnerabilities.
Industry regulators are asking for highly active management and inquiry regarding risks such as corruption, fraud, or financial threats.
Surveys carried out recently point out top executives vouch for the fact that one in three firms experience a vulnerability concern concerning fraud management.
Enterprises need to act now to develop a cumulative and in-depth strategy that enables them to understand the numerous evaluative and regulatory frameworks applicable as far as the respective organizational perspective is concerned. Under the present circumstances, enterprises have to retain their focus on making sure that codes of conduct, risk assessments, and other regulatory mechanisms are in place.
In addition, the compliance programs implemented should integrate the response efforts, fraud prevention, and detection mechanisms.
Several enterprises are still as susceptible to fraud now as they were in the pre-pandemic days. Sadly, a significant number of firms don’t make considerable efforts to enhance their risk management efforts until an event has occurred. However, that leads to irretrievable damage, and the need for expensive fraud management arises.