Stop occupational fraud - Three simple steps to help stop fraud
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Three simple steps can help companies counter internal fraud: 1) be proactive in identifying fraud risks through education and enforcing policies; 2) strengthen employment policies such as background checks and monitoring employee behavior; 3) employ data analytics tools to quickly analyze large amounts of data to identify suspicious patterns and mitigate risks early before significant damage occurs. Wynyard provides powerful software and analytics to help identify fraud and protect organizations.
Stop occupational fraud - Three simple steps to help stop fraud
- 1. 1 UNITED KINGDOM UNITED STATES CANADA DUBAI AUSTRALIA NEW ZEALAND Three simple steps to help stop fraud Published by Wynyard U.S. for Jim Oakes, Wynyard Director of Financial Crime and ACFE Regent Emeritus STOP OCCUPATIONAL FRAUD
- 2. 2 ABOUT WYNYARD Wynyard Group is a market leader in risk management and crime fighting software used in investigations and intelligence operations by government agencies and financial organisations. Wynyard solutions help solve and prevent crime, defend against advanced persistent cyber threats and counter terrorism. Wynyard’s powerful software platform combines big data, advanced crime analytics and tradecraft to identify persons of interest, stop offenders and protect victims. Wynyard has more than 120,000 users of its solutions and offices in the United States, United Kingdom, Canada, United Arab Emirates, Australia and New Zealand. For more information visit http://www.wynyardgroup.com
- 3. 3 JIM OAKES SHARES HIS INSIGHTS ON INTERNAL FRAUD Jim Oakes has been with Wynyard Group since 2013 as the Director of Financial Crime. A former Fraud Squad Detective, Jim is ACFE Regent Emeritus, a Certified Fraud Examiner and Certified Financial Crimes Investigator. He is an invaluable industry expert and advisor for Wynyard and brings over 30 years’ experience in Fraud, Security and Anti-Money Laundering. Jim has deep operational experience having operated as Financial Crime Director with some of the world’s largest banks in countries across Europe, the Middle East, Africa, North America, and Asia. https://www.wynyardgroup.com/en/about/indu stry-advisors/
- 4. 4 INTERNAL FRAUD AND THREAT IS ON THE RISE The number and frequency of internal fraud incidents continues to rise, according to Verizon’s 2014 Global Data Breach Investigation Report . The leading cause of insider threat is staff members taking advantage of their systems’ access privileges and using their organizations’ corporate LAN systems as attack vectors. Crimes ARE being committed on company premises.
- 5. 5 INTERNAL FRAUD STAKES ARE HIGH The consequences of internal fraud are significant to organizations, brands and Boards of Directors: • Financial loss • Reputational damage • Losing customers’ trust • Risk of increased regulation • Civil and even criminal penalties
- 6. 6 WHAT CAN COMPANIES DO TO COUNTER INSIDER THREATS? Three simple steps can help alleviate risk: 1. Be proactive in identifying and addressing the problem 2. Strengthen employment policies 3. Employ data analytics tools to quickly process and analyze large volumes of data to identify events and relationships of interest
- 7. 7 STEP ONE - TACKLE THREAT FROM THE START • Educate employees about fraud protection policies and their responsibility to report suspicious behavior. • Hold regular meetings to update staff on policies and the law and reiterate watching for suspicious activities. • Establish communications channels for those who want to blow the whistle safely. • Strict enforcement of password security is essential.
- 8. 8 STEP TWO: STRENGTHEN EMPLOYMENT POLICIES Strengthen pre-employment checks. • Don’t rely on an element of trust • Conduct effective background checks - don’t take job applicants at their word • Do not place a candidate who has “references pending” into any position of trust without a background check • Use agencies that guarantee they check references and backgrounds and penalize them if they don’t • Cross-reference applicants against your organization’s internal records
- 9. 9 STEP TWO: STRENGTHEN EMPLOYMENT POLICIES Know your employees: • Knowing and understanding your employees is key to management’s awareness of risk. • Be cognizant of employees’ behavioral or personality changes. Are employees requesting emotional or financial help or taking uncharacteristic actions?
- 10. 10 STEP THREE: MITIGATE INSIDER RISK EARLY TO MINIMIZE EXPOSURE Early detection is the best form of defense. • Detecting developing threats behind the firewall isn’t easy. • Quickly responding gives a much better chance to prevent the compromise or loss of critical information. • Early response gives valuable time to understand a situation, stop the problem from spreading. • Detecting insider misuse using traditional techniques can take months or years but by then, the damage has been done, and sometimes it’s irreparable. • Analytics help detect suspicious user patterns, identify and manage internal risk to quickly mitigate potential threats.
- 11. 11 RELATED NEWS AND LINKS Insights into the world of an ex-fraudster Local insurance fraud money-go-round has global impact The evolution of crime analytics - Turning big data into smart data to help solve crime Wynyard’s ACA software helps analysts to uncover hidden connections CONTACT US TO REQUEST MORE INFORMATION ON ADVANCED ANALYTICS SOLUTIONS TO ADDRESS INTERNAL FRAUD
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