Welcome to the first Anti-Fraud Newsletter!
TenIntelligence
Due Diligence | Digital Forensics | Investigations | Data, Cyber & Fraud Protection
Where there is opportunity, you will find fraud.
“It will never happen to me” is a phrase we often hear when it comes to fraud. Yet, in reality, fraud is the most predominant criminal offence in the UK and beyond.
Are you a CFO, Director, Founder of an organisation, or a Manager responsible for risk and compliance and want to eradicate fraud in the workplace?
In this first issue of Anti-Fraud Insights, the team delves into interesting topics relating to corporate fraud prevention, fraud investigation, and pragmatic advice to help readers fight fraud.
In this edition, we will cover:
??Important Updates & Expert Insights
The Economic Crime and Corporate Transparency Act (ECCTA): A New Dawn for Fraud Prevention
Anti-fraud professionals at the Association of Certified Fraud Examiners (ACFE) estimate that the typical organisation loses 5% of its revenue annually to fraud. Think for a minute about your organisation. How will the loss of those funds affect you? Fewer pay rises, potential layoffs, greater pressure to increase revenue or cut costs, or decreases in employee benefits. Fraud will also affect an organisation’s reputation with its customers, and potentially lose them to competitors.
New “Failure to Prevent Fraud” offence?
However, 17 years after the UK’s Fraud Act, the UK government made significant changes to the UK’s economic crime and fraud regime. This includes a new “failure to prevent fraud” offence for large organisations and a widening of corporate criminal liability for economic crimes committed by senior employees and management.? The new Economic Crime and Corporate Transparency Act (ECCTA) is now in force and introduces several changes to how the UK tackles economic crime.??
Does your organisation meet the new criteria???Check out now in our new article.
Top Seven Strategies To Prevent Corporate Fraud
Minimising financial losses at your organisation requires strategies to prevent corporate fraud. Cost-benefit analyses have shown that investing in strong fraud prevention controls makes good financial sense.
According to the Association of Certified Fraud Examiners,?organisations are estimated to lose up to 5% of revenue to fraud each year. In the most serious cases, fraud losses can be in the millions, which can bring down an entire company.
??Mitigate fraud with these seven fundamental steps.
??Keep an eye out for exciting events this month!
International Fraud Awareness Week: November 17-23, 2024
Launched in 2000 by the Association of Certified Fraud Examiners (ACFE), @International Fraud Awareness Week unites organizations worldwide each November to champion anti-fraud education and awareness. Through campaigns, training, and resources, this initiative aims to reduce fraud losses and strengthen company defenses. ACFE research shows that organisations lose about 5% annual revenue due to fraud. On a positive note, their report also validates that providing fraud training influences 38% drop in fraud losses and a 33% shorter duration of fraud incidents.
Join the Fight Against Fraud with Us on Nov 20th!
This year’s International Fraud Awareness Week is a call to action for professionals and leaders like you.
As a supporter ACFE's Fraud Week 2024, #TenIntelligence, invites you to join the movement #fightagainstfraud. On Wednesday, November 20th, attend our webinar designed to shed light on the vital role of digital forensics in detecting and preventing fraud. Join our expert speakers, Neil Miller and Lisseth Ortiz Diaz, to learn about fraud and how digital forensics uncovers hidden insights by recovering data or preserving evidence to strengthen fraud investigations.??Register here for FREE
??News highlights with expert insights
Bark as well as Bite
A 62-year-old trustee of an animal rescue charity in the UK was sentenced to three years in prison for embezzling over ￡230,000 from the charity. The trustee carried out the fraud by creating fake invoices for services like veterinary care. Instead of paying for these services, he diverted the charity's funds directly into his personal bank account. This fraudulent activity occurred over a span of six years, putting the charity at significant financial risk. The charity, which relies heavily on donations and public support to care for animals, faced severe hardship as a result, even coming close to shutting down some of its shops to stay afloat.
Key Takeaway
This incident highlights the need for strong internal controls and duty segregation in charities to reduce fraud risks. Independent audits, regular reconciliations, and whistleblower policies help identify discrepancies early and promote accountability. Here, weak oversight allowed a trustee to exploit funds over six years, showing how gaps in review can endanger organizational stability. This sheds light on how extended periods without review can lead to severe financial losses and jeopardise organisational stability.
￡1M Fraud Using Fake Invoices
A former employee for the National Trust, has been sentenced to prison for defrauding the organization of over ￡1 million. During his tenure as a building surveyor, the employee fraudulently authorized payments for 148 fictitious invoices linked to two companies associated with his sons.
Although the invoices indicated work supposedly done for the National Trust, no services were ever rendered, and the funds were funnelled into the accounts of the sons. The fraud came to light in October 2013 when the National Trust reviewed its procurement processes and identified a company that raised suspicions among managers.
Key Takeaway
This case highlights the need for strong procurement controls and vendor verification to prevent conflicts of interest and fake invoicing schemes. A lack of cross-checks on vendor legitimacy allowed fraud to go undetected. Implementing automated invoice tracking, audit trails, and conflict-of-interest declarations can help flag high-risk transactions. Regular vendor reviews further reduce fraud risks by identifying anomalies early.
Profit from Loss with our New Launch: Anti-Fraud Assessment!
Fraud is always not what it seems, but fraud happens!
Why should fraud prevention be a priority? It extends beyond saving money; it is crucial for protecting your organisation’s reputation, protecting revenue, safeguarding your employees, and securing your future. That is why we are excited to announce the LAUNCH of our new interactive Anti-Fraud Assessment service developed by experts. Take the assessment.
Let us help you improve anti-fraud controls, reduce fraud exposure, boost revenue and profits, as well as improve the anti-fraud culture across your organisation. If you would like to reduce your exposure to fraud, and “Profit From Loss”, connect with an expert.
Until next time!
Thanks for joining us on this journey to enhance fraud prevention measures. Stay vigilant, stay informed, and let us continue to make strides against corporate fraud!