What Businesses Should Know About Using Tech To Prevent Fraud

Published On August 15, 2017 | By Carolyn Guertin | Tech Updates

Fraud is the enemy of any business, regardless of size or industry and one of the key ways to prevent it in its many forms is through the use of the right technology. Unfortunately, too many businesses are actually hesitant to rely too deeply on new tech because they don’t realize how far it can go in promoting transparency and removing the potential for fraud in many areas.

Rather than fearing the introduction of new technology, businesses should be embracing it.

The following are some things businesses and corporations should know about using technology to prevent fraud.

Expense Fraud

One of the biggest areas of fraud most businesses deal with is internal, and that’s expense fraud. Expense fraud can not only be costly for a business and can easily go under the radar, particularly in large and global organizations, but it’s also detrimental to the entire culture.

Workplace culture that’s driven by the inherent or implied acceptance of fraud means that there’s likely to be a lack of transparency and honesty in other areas as well. When businesses look the other way regarding expense fraud, whether directly or indirectly, they’re setting their employees up with the idea that dishonesty doesn’t matter.

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Prevent expense fraud with the use of an integrated expense management software solution that’s centralized and simple to use, and also provides complete transparency.

By the way, in case you think it’s not happening in your company, the U.S. Chamber of Commerce reports that 75 percent of all employees will steal at least one time, and of these, half steal multiple times.

Information Security

Information security continues to be a massive and evolving issue for governmental and business organizations around the world.

It’s unlikely that data breaches will stop, but businesses can implement technology to combat them.

Specifically, there will likely be the need for more tech dealing with Payment Card Industry Data Security Standard compliance.

There will also need to be, when relevant, increasing technology put in place to make sure electronic banking transactions are safeguarded.

Data Audits

In large corporations, it can be tough to identify fraud to the point where you can determine specific solutions to deal with it, but this is just one more way where big data and related technology are important.

Organizations need to be able to collect and analyze data efficiently in order to see where fraud exists. The concept of putting data into Excel spreadsheets and manually analyzing it simply isn’t the best option at this point. There are data-related technologies that allow businesses to do link analysis, predictive modeling and visualization quickly and easily. All of these are good ways to spot where potential abnormalities might exist that could indicate fraud is happening.

Finally, the use of software and technology can help streamline internal controls which can also not just identify but prevent various frauds. It provides complete visibility into processes and standardizes them to the point where it’s much easier to see potential problems that might exist.

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