I had the opportunity to be interviewed on The Keiser Report, a financial news and analysis show on RT UK and the RT network, hosted by Max Keiser andStacy Herbert. The rigging of the LIBOR and forex were at the forefront of the discussion, both financial scandals that resulted in billions of fines being doled out to the responsible parties.
Indeed occupational fraud has enormous consequences. Notably:
The typical organisation loses an estimated 5% of revenues each year to fraud (Source: The 2014 ACFEs Report to the nations on occupational fraud and abuse)
If applied to the 2013 estimated Gross World Product this estimates a rough $3.7 trillion global loses on the yearly base (Source: The 2014 ACFEs Report to the nations on occupational fraud and abuse)
The 2014 ACFEs Report to the nations on occupational fraud and abuse states that organisations which have a pro-active data monitoring system implemented, have 60% less costly fraud cases and 50% shorter in duration
The biggest issue with LIBOR, forex and many other fraud events like them is that neither case was particularly complex in an organisational matter. Continuous Control Monitoring system (CCM) are capable of detecting and raising red flags on fraud in the relatively early stages, therefore lowering the loss impact caused by both such situations.
We live in a super fast world surrounded by huge quantities of data, and leaving footprints wherever we go.
A recent survey showed that people are more fearful of online fraud than burglary. it is because we are accustomed to protecting our physical possessions while our virtual possessions remain relatively vulnerable. People know the problem exists, but don’t know how to solve it. Pro-active software becomes increasingly important as the portion of our lives that is online expands. This is very reason FROPS exists, acting as an alarm for all potential trespassers to our digital world. The potential and the impact of a FROPS installation is huge and immediate, taking into consideration the whole of the industry: banking, telco, insurance, government.
In the world of fraud, there’s a lot to be done and a lot of money to be saved. I enjoyed discussing some of the finer points on The Keiser Report and hope the discussion will be of use to you as well. Take a look below: