New Report Finds Companies are Failing to Use Technology to Fight Fraud
According to a new report by KPMG, Global Profiles of the Fraudster , companies are failing to use technology to fight fraud. While an increasing number of malicious actors are using technology to perpetrate fraud, the vast majority of companies are not using the technological resources available to fight it.
The report cites technology significantly enabled 29% of the 110 fraudsters analyzed in North America and 24% of the 750 fraudsters analyzed worldwide. What’s more, 25% of frauds that hinged on the use of technology were detected by accident rather than safeguards or analytics, compared to just 10% spotted by accident in cases where the criminals did not use technology.
KPMG also found that weak internal controls contributed to 59% of frauds in North America. This finding should come as no surprise to many, especially when you consider the lack of controls around spreadsheets which happen to be one of the easiest places to commit fraud.
Countless news stories have appeared over the years showcasing how easy it is to manipulate spreadsheets. With just a few tweaks, spreadsheet data can be deliberately hidden or cleverly disguised making it is easy for unscrupulous employees to manipulate spreadsheets for personal gain. On a larger scale, spreadsheet fraud also can make a company appear to be worth more much more than it is. Without internal spreadsheet controls in place, changes easily can be made and data hidden without anyone being the wiser.
Last month Incisive announced new capabilities have been added to its spreadsheet management technology that make it easier for organizations to identify fraudulent behavior. The company’s flagship Xcellerator product has been enabled with automated detection capabilities that locate hidden and misrepresented data within spreadsheets thus significantly reducing risk and exposure. With greater awareness of technology like Xcellerator, spreadsheet fraud can be significantly reduced, even eliminated.
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