What is Fraud Detection and Prevention?

Integration of the information systems dimension

While organizations benefit from the progress made in recent decades in terms of information systems, social media score, the popularization, and sophistication of integrated software (ERP) and the proliferation of automated transactions generate increased risks of fraud. In fact, the penetration of the company's information systems are often cited as a major risk of fraud and it is true that numerous studies regularly show the extent of this danger for organizations, illustrated for example by the hijackings of information or manipulation of financial transactions.

Identifying the risk areas inherent in information systems is therefore a key vector for preventing fraud. When setting up its information system, the company must ensure that it is correctly configured to integrate the necessary separation of functions and tasks through authorizations and appropriately defined profiles.
Thus, “automated controls” must be built which, if well designed, constitute extremely powerful fraud prevention factors.

The "Information systems" component of the fight against fraud must be taken in its widest dimension. Automated controls - that is to say "programmed" in computer applications - will only be truly effective if the computer environment is mastered, whether it is for example the security of the databases or the procedures. switch from applications to production. Otherwise, check your social media score, a slightly informed fraudster can easily bypass these checks.

Difficulties

The very term anti-fraud program is probably ambitious, and management must question the ability of the organization to reduce behaviors likely to encourage acts of fraud, it is understood that no one can, unfortunately, guarantee that these will not occur.

A company that is effective in the fight against fraud is one that will know-how to create a dissuasive control environment, in which management, aware of its responsibilities and its role as a model will also keep in mind that any human behavior can, under certain conditions, lead to acts of fraud.

Beyond a simple intention of principle, the clearly stated desire of management to establish a robust control environment is such as to demonstrate that the organization has equipped itself with appropriate means to fight effectively against fraud.

We analyze here the operating methods and the conditions allowing to optimize an anti-fraud program.

The success of an anti-fraud program depends, in particular, free social media score, on awareness and in-depth awareness of all layers of the organization with regard to fraud.

This involves creating the conditions for deterrence and setting up manual and automatic controls conducive to fraud prevention within all business processes.