5 Techniques To Detect And Avoid Frauds In An Organization

There have been increase in the frauds and thefts all around the globe. There is a threat that the enterprises data can get hacked hence the companies are investing for Cyber Security. It is very important to make the online platforms secure as fraud can take place in any software, any tool in any sector whether it is auditing, IT, Banking, Accounting and others.


Here are a few measures that can be taken to avoid frauds or even detect them and make people aware about it in a corporate environment.

Segregate the jobs: If there are more than one person to do a particular process whether it is small or big, the risk of fraud detection becomes less as every person handles one single piece of work and would rarely have control or information about the other sectors. This will avoid the risk of fraud as there are less chances of the process to go wrong. For example in a company the task of ordering goods, checking the goods, receiving goods, and paying for them is done by five or more different people hence lowering the risk of fraud.

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Test the transactional data: The data which is going out should 100% be tested and not just a few samples of it randomly. The testing of data samples may be effective if the problem is consistent throughout the database otherwise it is a high risk testing which may cause problems later. Sometimes, the data can be modified or leaked within the company’s data being hidden which may not be able to estimate the fraud on test of sample data.

Create a potential fraud prone area’s profile: Risk assessment can help lower the risk of frauds in a company. Make a list of areas which has a risk of frauds. These would be the areas which may reduce the shareholder value of the company. By analyzing these risks, the company can take security measures across these process which will reduce the risk of frauds.

Constant monitoring of the data and transactions: Improve the controls over the transaction authorities to check and validate the usefulness and effectiveness of the security control that have been implemented in the company. Continuous analysis of the security and data measures taken will set up scripts to run against large volumes of data which can be useful to detect the problems occurring in long run.

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Take actions even if there is any small problem in the system: It is always suggested to take actions even if there is any small problem or defect being detected in the system. If these problems are ignored they may lead to large problems of frauds and malicious attacks. So it is better to solve them as soon as there is a warning about these alarms. Create reports about the analysis of the security processes and take recommendations on how to tighten the security of the data and systems.

These are the few measures that can be taken to lower the risk of frauds inside an organization making the data and transactions safe and secure.