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How To Solve The Biggest Problems With Fraud Management

In a 2016 report, the Association of Certified Fraud Examiners (ACFE) shares some sobering statistics that should concern businesses of all sizes. From questions answered by 2,140 respondents, the report concludes:

  • The total loss for businesses (due to fraud) was more than $63 billion, "with an average loss per case of $2.7 million."
  • Typically, businesses "lose 5% of revenues in a given year as a result of fraud."
  • In businesses with less than 100 employees, the median financial loss was on par with those incurred by large businesses (more than 10,000 employees).

Fraud is a global phenomenon, with the potential to affect any organization. As the ACFE report points out, smaller businesses are particularly vulnerable, because of their "significantly lower implementation rate of anti-fraud controls."

Such controls make a huge difference. Among companies that had anti-fraud controls in place, losses were 14-54 percent lower and corruption was detected 33-50 percent more quickly.

Resistance to Investigations and Fraud Management

What prevents organizations from implementing strict anti-fraud measures to protect against possibly devastating financial losses?

The answer, according to risk analyst Tasha Bailey, CFE, is fear. Three types of fear drive businesses to avoid addressing this critical problem:

  • Cost. With insufficient documentation to establish a threat of fraud, many businesses can’t justify the expense involved in fraud prevention software and, if needed, the additional costs of investigation and potential litigation.
  • Technology. Adding new software technology makes it more likely a company is exposed to data breaches, respondents felt.
  • Reputation. Taking steps to uncover fraud means risking a blow to the organization’s reputation. In our social media era, news (or even speculation) of fraud can be extremely damaging.

Bailey doesn’t discount these fears, but she concludes, "Companies must realize that the benefits of fighting fraud far outweigh the fears."

That’s where Column Case Investigative comes in.

Our comprehensive case management solution enables organizations to record, document and access data in a seamless, secure manner. This workflow-driven, web-based fraud management software solution streamlines the investigative process, tracking fraudulent data trails, and managing evidence and record-keeping.

Case management for fraud investigations addresses virtually all types of threats, including:

  • Money laundering schemes
  • Contract and procurement issues
  • Bribery and corruption
  • Web, security and digital identity threats
  • Conflicts of interest
  • Risk management challenges
  • IT infringement and theft
  • The need for vendor audits

A System of Truth

Organizations conducting an investigation (or managing related activities, like following up on whistleblower tips) need a single unified system of truth to adequately control the investigation. Column Case Investigative’s investigation management software offers a number of best practices features including visualization — a visual guide companies can use to identify relationships and make connections—key steps in the process of solving fraud.

As noted by ACFE, no business is impervious to the threat of fraud. Banking and financial services are typically among the most victimized industries, though government and manufacturing industries are susceptible as well. Billing schemes such as Medicare fraud occur with appalling frequency among health care practices.

Stop Fraud in Your Organization

In addition to all other aspects around the complex issue of fraud, companies must somehow manage evidence, investigate fraudulent data trails, and maintain accurate records; while also complying with HR, organizational and governmental regulations.

Without state-of-the-art investigation management software, anti-fraud control is nearly impossible to achieve.

Column Case Investigative’s holistic approach provides centralized evidence collection and streamlined search functions. As a result, our clients benefit from greatly improved security and regulatory compliance — achieving a successful fraud resolution in most case outcomes. It’s one reason why Forrester Research, a leading research and advisory firm, named Column Case Investigative one of 14 "Providers That Matter Most in Dynamic Case Management."

Find out more about how your business can become more organized, efficient, profitable and more secured against fraud. Contact us today!

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About Column Case Investigative

Focused on the real-world needs of organizations handling investigations, Column Case Investigative is a workflow-driven, web-based case management solution for investigation management. Best practices case management features such as access control, activity tracking, reporting and compliance help your organization be more organized, efficient and profitable in managing investigations.