Wednesday, September 10, 2014
Fraud: A Growing Epidemic
I recently had to summarize a small section from the 2014 Report to The Nations on Occupational Fraud and Abuse published by the Association of Certified Fraud Examiners. I found it so interesting I had to read the entire thing. To most people this would not draw their interest, but did you know, that fraud is a growing epidemic. It is one of the hardest crimes to measure the impact it has on society because it is often the hardest to detect and the least reported of all crimes. The most common perpetrators of fraud are lower level employees and when the crime is discovered they are often terminated without any charges being formally filed for their indiscretions. This in turn, places the perpetrator of a crime back into the job market where the crimes are perpetrated over and over again. As the levels of authority in an organization increase the less likely for the individual is to commit the crime of fraud. However, if they do commit fraud the median losses to the company are significantly higher. The bigger the power the bigger the fraud and the harder to catch. Another huge obstacle in the fight against the crime of fraud is that you cannot identify the perpetrators by age, race, or any other descriptive characteristic. Fraud can and is committed by people from all walks of life, from teenagers to grandmothers, from cashiers to CEOs, fraud perpetrators have no defined identity. With advancements in technology, fraud is becoming even more prevalent. Information is stolen a disseminated via the internet so that the victims of crime are often left with a faceless perpetrator that can ruin their lives in a matter of seconds.
In summation, perpetrators of fraud come in many shapes and sizes. Fraud will continue to be an issue in companies and for individuals around the world. Perpetrators cannot be profiled according to age, gender or any other defining factor because it happens at all levels and with an assortment of people. The best way for companies and individuals to protect themselves from fraud is to establish safeguards and procedures that will ensure those who commit fraud are caught in a timely fashion.
Association of Certified Fraud Examiners. (2014). Report to the nations on occupational fraud and abuse. Austin, TX: ACFE, Association of Certified Fraud Examiners.
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Amy,
ReplyDeleteI think fraud wouldn’t draw the attention of most people because they don’t think they could be affected, when anyone can become a victim of fraud. There should be more serious consequences for those who commit fraud because like you said, the perpetrator goes back into the job market if nothing is done. Fraud may be a growing epidemic because you cannot easily identify those who commit fraud. People need to learn ways they can protect their information because anyone can have access to the information without the proper safeguards. Even with the proper safeguards and procedures, some people will still make an attempt to invade other’s privacy, but having that layer of protection is important.
This is an interesting topic and you even said that with the advancements in technology that it is getting even harder to catch these people that are the criminals. I have read many articles and seen in the news more time then I can count about heads on companies stealing money from the company and putting it into off shore accounts and not getting caught for years and years. The people that try at a much smaller level are certainly the ones that tend to get caught much easier. I liked the knowledge behind it and good post.
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