A How-To-Guide for Preventing Procurement and Payment Fraud
Though accounts payable teams have always had to contend with fraud, today’s scams seem to be more sophisticated and more costly than ever before. One example: The FBI recently arrested a cable TV executive on charges of defrauding his employer of more than $8 million. He is alleged to have initiated contracts for services with companies he owned, for services that were never delivered, while using false and stolen identities to mask his involvement.
You may think “it can’t happen in my company,” but you might want to think again. According to the Association for Certified Fraud Examiners (ACFE) 2016 Report to the Nations, the typical company will lose 5 percent of annual revenues to fraudsters. Data from the Kroll Global Fraud Report for 2015-2016 shows that 75 percent of companies say they have been a victim of fraud—up 14 percent over the past three years.