May 26, 2019
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Insider Fraud

Insider FraudThe advent of the digital age brought a lot of possibilities and productive results, especially in the corporate setting. What used to take multiple hours of administrative work can now be done with a single click of the mouse, resulting in increased output.

Personnel information, client records, and company statements are efficiently tucked away in a data cloud that could be readily accessible to employees given the right level of security clearance. Now, what happens when individuals acting as gatekeepers are the ones who misappropriate the use of such information?

Breach of Trust

One of the more controversial corporate fraud case recently uncovered involved a bank whose employees were suspected to be enmeshed in a fraudulent scheme worth $76 million. This involved forging documents to borrow millions of dollars for non-existent property developments. Funds were taken from clients’ accounts without their knowledge and consent, resulting in significant financial and property losses for the said clients. The bank employees had their clients’ information at their disposal which enabled them to carry out such an elaborate scheme over a period of time.

Eliminating the Threat

This is but one of the many cases wherein the perpetrators of the fraudulent activity are the same individuals who should be preventing it from happening in the first place and are considered experts in their fields. Needless to say, companies nowadays have managed to up their ante when it comes to managing this seemingly daunting task of mitigating risks:

  • Employment and recruitment practices are attuned to fraud prevention by implementing employee ID checks and collaborating with experts who conduct background and employee ID checks.
  • Implementation of zero tolerance policies against fraudulent activities.
  • Strict enforcement and follow-through of policies.
  • Proactive evaluation and update of existing anti-fraud policies.

Dealing with a fraud case need not be stressful and time-consuming, which is why it’s important to have an extensive research and get the help of professionals.

Ink Well Mag

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