The BBC has recently reported on a growing trend in procurement fraud and other lifestyle-fueling causes of employee fraud within the UK. In many cases the fraud is so bad the company is forced into administration.
What can be done to uncover and prevent employee fraud?
Imagine you’re an employee carrying out fraudulent activities and you learn that senior management are implementing procurement or contract analytic analytics. You see, for the first time, examples of incredibly detailed reports that identify areas for financial streamlining within the organization as well as highly intelligent analytics for automatically uncovering bogus transactions and suspect activity.
Are you going to continue?
By explaining to your workforce the new lengths you’re prepared to go to in order to fight wasteful activities you are in effect taking a proactive stance on fraud. Anyone considering illegal activities are likely to reconsider in the light of your new found passion for transparency and insight.
Of course, advanced data analytics act as a preventative mechanism when deployed stealthily, without the knowledge of your workforce, but I wonder if the true value comes from publicly declaring your intentions and demonstrating your new found capabilities for fraud and fine-grained performance analysis.
What do you think? Welcome your views.