In the following, we outline what organizations can do now to prevent and detect asset misappropriation: 1. Proactive Data Monitoring Limiting the fraud’s duration and loss may be accomplished through proactive surveillance or data monitoring. In fact, of all the detection methods analyzed in the ACFE’s research, proactive surveillance and data monitoring detected frauds fastest, with a median duration of six months. While data analytics is an effective tool to reduce fraud risk, only 53% of organizations in this study with more than 100 employees have a proactive data analytics program in place. Additionally, only 19% of organizations in this study with less than 100 employees have a program.1 Of all the detection methods analyzed in the ACFE’s research, proactive surveillance and data monitoring detected frauds fastest, with a median duration of six months. Payment Risk Analytics is the culmination of decades of experience performing data analytics to identify potential red flags of fraud in accounts payable, purchasing card and payroll data. Check and payment tampering pose the highest dollar risk for asset misappropriation schemes.1 Utilizing Payment Risk Analytics can be an effective way to help manage the risk of internal asset misappropriation fraud at your organization and provide additional insight into day-to-day operations. 2. Fraud, Ethics and Compliance Hotline In addition to applying proactive data analytics, organizations can also more effectively handle fraud risk by setting up a fraud, ethics and compliance hotline. Cases of fraud are most commonly detected through tips, which net three times as many cases as any other detection method. This finding is consistent with prior ACFE studies, which have shown tips to be the most common way fraud is detected. IntegraReport, the fraud, ethics and compliance hotline from Forvis Mazars, assists our clients by helping to increase the likelihood and speed of detecting incidents of fraud, ethical violations and compliance issues. The ACFE’s research found that organizations with hotlines were nearly twice as likely to detect fraud via tips as organizations without hotlines. This illustrates the crucial roles that hotlines play in addressing fraud risk. 1. “Occupational Fraud 2024: A Report to the Nations,” Association of Certified Fraud Examiners, Reporting from January 2022 to September 2023. 2. “Occupational Fraud 2022: A Report to the Nations,” Association of Certified Fraud Examiners, Reporting from January 2020 to September 2021. Annie is a member of the Analytics team, focusing on product development and automation. Annie’s experience includes developing new products and helping to streamline and automate existing products. She performs analytics to help identify fraud, waste and abuse in payment data that can help highlight opportunities for internal control improvements. Macie is a member of Forvis Mazars’ Forensics & Valuation practice unit. She is an experienced senior consultant with a demonstrated history of working in the accounting industry. Macie runs the day-to-day operations of the INTEGRAREPORT hotline, where she provides dynamic training and Unmatched Client Experiences.® To learn more, contact Macie Latham at macie.latham@us.forvismazars.com and Annie Laudick Cortez at annie.laudick@us.forvismazars.com. DID YOU KNOW? Enjoy your association news anytime, anywhere. Scan the QR code to visit our online publication to stay up to date on the latest association news, share articles and read past issues. west-virginia-banker.thenewslinkgroup.org 25 West Virginia Banker
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