CRI Group is once again a proud supporter of International Fraud Awareness Week, Nov. 11-17, 2018. This global movement aims to minimise the impact of fraud by promoting anti-fraud awareness and education. Companies lose an estimated 5 percent of their revenue annually due to fraud (ACFE Report to the Nations, 2018) and additional training, prevention programs and best practices are needed to help bring that number down.
A few more “Fraud Facts” help illustrate some statistics in the fight against fraud and corruption (Source: ACFE Report to the Nations, 2018).
The average fraud lasts 16 months before it is discovered. The longer a fraud lasts, the greater the financial damage (schemes that last for several years can cause hundreds of thousands of dollars).
In a recent study of fraud cases, the median loss was $130,000. 22 percent of cases caused losses of $1 million or more.
The most common detection method for fraud is tips. And organisations that have reporting hotlines are much more likely to detect fraud through tips than organisations without hotlines.
Zafar Anjum, founder and CEO of CRI Group, said that International Fraud Awareness Week (called Fraud Week, for short) is an important effort to put a spotlight on fraud and help educate people about its perils.
“CRI Group has been a proud supporter of Fraud Week for past years”, Anjum said. “It’s an important time to urge organisations of all shapes and sizes to conduct proper due diligence and minimise risk. Only by addressing fraud and corruption proactively can we make progress in preventing and detecting it”.
For CRI Group, though, helping organisations prevent and detect fraud is a year-round commitment. That’s why Fraud Week is a great time to reflect on CRI Group’s recent efforts in the fight against fraud, and to also look ahead to activities on the near horizon.
Here are just a few of the highlights:
Launched Anti-Bribery Anti-Corruption Centre of Excellence (ABAC®). At CRI Group, we recognised the need for an independent certification body for ISO 37001: Anti-Bribery Management System. That’s why we founded the ABAC® Center of Excellence – to assist business organisations worldwide in certification for anti-corruption, risk management and compliance. By providing training and certification for ISO 37001, our experts help organisations implement effective anti-bribery management programs using widely accepted controls, systems and best practices in line with local and international legislation.
Hosted ABAC Summits to help fight corruption. With ABAC in place, we found that business leaders were eager to learn more about preventing bribery and fighting corruption. The perfect solution was to create and host an ABAC Summit to gather legal, compliance and risk management experts together in one place to share best practices, demonstrate resources and discuss the latest technology for preventing corruption. The first ABAC Summit was held last year in Pakistan, and this year’s Summit was hosted in Malaysia – both were an incredible success! Next, the Summit will return to Pakistan (29th January 2019).
Spread knowledge. CRI Group participated in conferences and educated professionals on fraud and corruption across six locations in four continents. Additionally, our experts discussed ISO 37001 and other anti-bribery management solutions with more than 1,000 professionals around the world. “CRI Group is comprised of subject-specific experts with diversified speciality areas,” Anjum said. “Our audit team has years of substantive field experience as investigators, compliance officers and legal professionals.”
Engaged in training to enhance expertise. CRI Group’s audit team has undergone more than 140 hours in continuing ABAC training. The methods for committing fraud and corruption are ever-evolving, so our agents remain dedicated to their building their skill sets and staying on the cutting edge to help clients be successful in preventing and detecting fraud.
Achieved accreditations for ISO 37001. CRI Group earned official accreditation from Emirates International Accreditation Center – EIAC (UAE) to administer training and certification for ISO 37001 ABMS. “EIAC provide objective evidence that organisations operate at the highest level of ethical, legal and technical standards,” said Zafar Anjum, founder and CEO of CRI Group. “That’s exactly where ISO 37001 fits in – helping to protect organisations from bribery and money laundering.”
Raised fraud awareness. CRI group has produced more than 50 educational news articles and publications to help educate business leaders, government leaders, professionals and the public about fraud and corruption. Our subject matter experts deliver important information, such as why forensic accounting can be important during a fraud investigation, or how risk assessments can be used to better protect your organisation. Our content is created to inform and provide important information that might be missed in today’s news cycles.
Found fraud. Through various client engagements, CRI Groups investigative analysts found a large number of red flags indicating possible fraud. How many? The answer may be surprising: our agents discovered more than 700 red flags across 80 countries. The first step in fighting fraud is knowing that it exists. The sooner it is discovered, the less damage a fraud scheme can do to an organisation.
During Fraud Week, think about the statistics at the beginning of this article … and ask yourself or your colleagues: Are we doing all we can to prevent fraud? Remember, the landscape is always changing, and fraudsters will do everything they can to use evolving technology and other methods to find vulnerabilities. Moreover, the best way to fight fraud is to prevent it in the first place.
CRI Group is here to help. Contact us today to learn more about our ABAC training and certification opportunities, our EmploySmart background checking process, our investigative services and other offerings.