Fraud Alert! Are You Ready to Prevent Internal & External Fraud in Your Company?

Fraud Alert! Are You Ready to Prevent Internal & External Fraud in Your Company?

Workplace fraud happens when money, information, or commodities are stolen or treated inappropriately. From an employee taking funds to a cyber-criminal stealing data, fraud is a serious issue among all sizes and types of businesses. The increased use of technology creates more opportunity for theft and misappropriation than ever before.

Take a moment to learn about internal and external fraud, and learn what hb&k can to do help you prevent it in your company.

Occupational Fraud

This is committed internally by employees, managers, officers, or owners of the company. Why does it occur? One well known theory is the Fraud Triangle, developed by American sociologist Donald Cressey, a model for explaining the factors that lead someone to commit occupational fraud:

  • Financial Pressure – the individual’s personal financial struggles or business performance expectations
  • Opportunity – the individual can see a clear course of action in which the crime can be committed in secret
  • Rationalization – the individual can justify the crime

hb&k Solutions to Occupational Fraud

Financial pressure and rationalization factors are difficult to eliminate, so hb&k focuses on removing the opportunity factor. We can work with you to create a control system by integrating segregation of duties, reviews, and approvals into your day-to-day processes. Doing this will substantially decrease risks associated with the opportunity factor. If you already have a good system in place, we are experienced in testing systems of controls to help ensure compliance and peace of mind.

At hb&k, we are leveraging technology to help our clients identify occupational fraud by utilizing MindBridge AI. This is a software powered by machine learning and artificial intelligence, which allows us to perform analysis on 100% of transactions rather than sampling a portion of the data. We can act as your internal auditor, performing a number of procedures along with data analysis to ensure compliance and security.

External Fraud

With the rapid change and development of technology, cyber-attacks have emerged as one of the most dangerous and effective schemes of external fraud. How are hackers accessing your sensitive data and stealing from your organization or the customers and vendors you do business with? Through you and your employees!

We hear of attacks on big companies such as, Equifax, Yahoo, and Target, while in fact these attacks are happening every day to businesses of all sizes. As these large companies implement more and more cybersecurity, the small and mid-sized businesses will become the low-hanging fruit for hackers.

 hb&k Solutions to External Fraud

To better help our clients and ourselves, hb&k has teamed up with ThreatAdvice, a company specializing in cybersecurity education and awareness. ThreatAdvice focuses on your cybersecurity weakness: your employees. By providing educational tools, simulations, and other assessment exercises, your employees are trained to identify and prevent cyber-attack situations. ThreatAdvice also provides a variety of template policies and procedures surrounding cybersecurity.

Start Your Prevention Today

Our audit staff is experienced in detecting occupational fraud. Using Mindbridge can ensure you have a thorough analysis before we set you up with the internal controls. Additionally, every hb&k employee completes training through ThreatAdvice to be more aware of CyberSecurity measures, so we know first-hand how important education is for prevention. If you are interested in implementing internal controls or cybersecurity procedures to prevent fraud in your organization, please reach out to a hb&k representative today!

By: Matt Nettles