Employee fraud: Your protection may be hurting you
Finance chiefs place a lot of trust in front-line staffers as the first line of defense in preventing fraud. But according to new research, these front-line workers may not be nearly as trustworthy and effective as CFOs think.
Nearly a quarter (23%) of employees look the other way if they see misconduct taking place, according to the recent “Integrity Survey 2013,” by KPMG, a U.S. audit, tax and advisory services firm.
That’s a huge bump from the 6% of employees who admitted to doing this just five years ago.
Contracts, payment terms susceptible
One area that’s particularly susceptible to fraud: vendor contract or payment term violations.
Thirty-five percent of employee say they’ve observed their peers violating vendor contract or payment terms.
Employees may not be coming forward with this information because they believe getting results and hitting goals are the only things that really matter in the long run.
So it may be a good idea to remind finance staffers that following the proper procedures is an essential part of getting results and hitting benchmarks — and that looking the other way or taking shortcuts is in no way acceptable.
- Share on
Free Training & Resources
Webinars
Provided by Insightsoftware
White Papers
Provided by Personify Health
Further Reading
Adopting AI in the workplace is going to be a struggle unless attitudes about the controversial technology improves. And there’s no g...
Compared to the rest of the world, the U.S. has lagged behind in rapid B2B payments technology, but that’s about to change. The Feder...
The Securities and Exchange Commission (SEC) can no longer deny a party charged with securities fraud to a jury trial in a federal court. ...
The wave of tech fraudsters landing in the slammer rolls on. Elizabeth Holmes of Theranos infamy, crypto hustler Sam Bankman-Fried … ...
Any business owner who paid employee salaries or health benefits during COVID-19 restrictions will be waiting a while longer for a tax cred...
Companies know that clients prefer doing business with environmentally responsible partners. If a company is doing something to reduce plas...
