The scourge of businesses
Nonetheless, two indisputable facts can be mentioned: on one hand, no company can escape the danger of fraud; on the other hand, there is no direct connection between company size and the monetary amounts of fraud. It is also observed that the human factor is both an Achilles heel for the company and its savior. In fact, most fraud attempts are defeated by human intervention.
While digital transformation has been a strong boost for productivity within companies, it also opened a new window through which fraudsters—ever more well informed and better organized—can enter; the two are intrinsically linked with each other.
Warning lights are flashing red at many companies: half of all UK companies have been victims of fraud in the past two years, according to a survey conducted by PwC. The research found that for more than half of the organisations affected, criminal activity resulted in losses of over $100,000, and almost a quarter of UK victims admitted to losing more than £720,000.
Nonetheless, awareness regarding this reality has yet to be followed through with actions. Most organizations do not have a contingency plan that they can activate in case fraud occurs, despite the considerable risks: Financial impact is at the top of the list, followed closely by data theft and potential impact on the company’s reputation.
Companies with a proactive approach gain many benefits, including: Greater loyalty from their clients; reduced operating costs; better brand image for their company; and promotion of their brand value as an employer.
Responsible for the company’s financial health, the CFO is therefore explicitly involved with any losses caused by fraud, naturally on the front-line for leading the fight!
CFOs are the guardians of financial information and are therefore ideally positioned to administer a solution. They are the ones who diagnose the problem and mobilize all available resources to mitigate and ultimately prevent fraud.
"Our technologies are used to detect falsification on various types of documents, such as pay slips, identity documents, proof of address, etc.
Pay slips are a very real example. By implementing steganographic analysis technologies, we can detect whether information such as numbers, dates, names, or salary amount were modified."
Jean-Marc Pédréno, Chief Technical Officer, Yooz.
Did you know?
The most advanced AP Automation solutions use a variety of different artificial intelligence technologies that enable finance and accounting teams to make their processes more secure and more reliable.
These expert systems are involved from document capture, the very first step in the document automation process, to detect fraudulent types of behavior. Examples include using steganographic shape and metadata analysis to detect modified information on an invoice by tracking down any changes made in the image, such as bank details, which is one of the leading sources of invoice fraud. Steganographic methods include a frequency analysis component that detects falsified information by identifying changes made to an image, such as amounts, dates, or names.