5 Key areas where businesses of any sizes may be at risk of fraud

How businesses of all sizes can prevent fraud and scams while increasing efficiency?

With sometimes limited resources, it’s important that leaders streamline processes to remain efficient. However, the challenge doesn’t stop there. Any change or process optimisation must be done so without compromising on security. For example, the rise of fraud means organisations need to be more vigilant than ever. 

A global study by the Institute of Financial Operations & Leadership revealed that over two thirds (69 per cent) of businesses have experienced external fraud in the past three years, while 81 per cent of teams admitted they would not be able to identify finance fraud immediately. What’s more, 66 per cent of teams don’t believe they are well protected from fraud.

Fabian Calle, managing director, small and medium business, SAP Concur Australia and New Zealand, said, “Financial strain and personal challenges can sometimes push individuals towards ill-advised decisions, resulting in occupational fraud. The repercussions go beyond just monetary loss, with potential knock-on effects including regulatory non-compliance, company inefficiencies, potential reputational damage, and even a possible dip in team morale.”

There are five key areas where Australian and New Zealand businesses may be at risk of fraud:

• Questionable expense claims
• Non-compliant expenses
• Misleading invoices
• Business email compromise
• Double billing

In the face of new methods and increasing incidences of fraud, companies of all sizes must continually identify and address vulnerabilities.

Here are four strategies business leaders can use to ward off fraud and enhance efficiency: 

1. Take policy into consideration: A travel and expense policy should be dynamic, adapting to evolving business needs. Read key considerations in the full article referenced below.
2. Establish the right technology process: Having the correct technology in place can significantly help in preventing and detecting fraud. Read the details in the full article referenced below.
3. Use reporting to monitor and analyse spend data: Monitoring employee spend is crucial in fraud investigation. The swiftness and method of fraud detection can influence the magnitude of the fraud. Read more about how in the full article referenced below.
4. Compare compliance benchmarks with industry experts: Recognising fraud schemes can guide a company in designing controls against significant threats. Determine the effectiveness of policies by evaluating certain areas, read more about the details in the full article referenced below.

Fabian Calle said, “Efficiency is more than just cutting corners; it’s about working smarter. Automated expense, travel, and invoice management solutions are designed with this ethos in mind. These solutions streamline the expense report process, leading to faster reimbursements, and they offer mobile tools that both enhance the work experience and show team members that they’re genuinely valued. Importantly, the solutions also reduce time-consuming administrative tasks like chasing receipts, ensuring that the focus of employees remains on core business responsibilities.”

Read the full article on the Small Business Connections portal