From1 From2

Every year in our country, research is carried out on the facts of corporate fraud at enterprises. Unfortunately, the statistics are disappointing. Thus, out of 130 analyzed enterprises, about 60% faced fraud. As a result of such actions, companies lose profits, which vary from 5 to 15% and are calculated in hundreds of thousands of dollars.

Some companies try to resist corruption within the company on their own, but not everyone succeeds in doing it on their own. In such cases, it is better to resort to the help of specialists. ForensicPro will help protect businesses and eradicate fraudulent schemes.

In most cases, corruption is rampant due to low wages, but this is not the only cause of intra-corporate fraud. There is a way out – forensic.

Forensics is a set of methods that help to investigate fraudulent activities, find the culprit, develop an optimal security system and further minimize the risks of such acts.

To identify and resist fraudsters in the company, experts use a number of tools:

  • Compliance is a set of norms established by the current regulatory legal acts, incl. local, which must be followed and strictly observed by every employee, regardless of the position held;
  • Regular audit – annually, it is necessary to conduct not only financial, but also legal checks to make sure that all financial transactions, documents drawn up, etc. are reliable and transparent;
  • WBS is a so-called feedback system that allows you to involve all employees of the company in the work and, with their help, recognize and promptly detect fraudulent actions by third parties;
  • In-house tools – these include, for example, hiring an independent expert, financier, who will personally subordinate to the shareholder or owner of the company, while being impartial and disinterested.

Unfortunately, many business people do not respond appropriately in a timely manner, resulting in more serious fraud. It’s not just about financial implications. What does intracorporate fraud lead to:

  • decrease in profits;
  • deterioration of the company’s reputation;
  • decrease in stock capitalization;
  • loss of business ties;
  • minimization of work efficiency;
  • suspicion;
  • deterioration of the situation within the company;
  • loss of assets.

To protect the business, increase the level of profits, it is necessary to constantly use a certain set of financial and legal instruments. If it is impractical to keep a staff of specialists and your own security service, you can contact ForensicPro.

Виды мошенничестваThe most popular types of fraud

If we consider fraud in general, as a wrongful act, then three main elements can be established:

  • motivation, motivation, circumstances;
  • a real opportunity to commit fraud;
  • self-justification.

Today, there are dozens of gray schemes through which employees of the company, third parties or managers manage to withdraw part of the profits and assets from the company, thereby worsening not only the financial position, but also the status and reputation in the market.

Among the variety of intracorporate fraud, the most popular types can be identified:

  1. Collusion with outside agents. The external agents can be counterparties, partners of the company, or outsiders, third parties. Such fraud is expressed in the opening of shell companies to which money is withdrawn from accounts, assets, etc. Also, all kinds of forgeries in contractual work are possible, for example, unfavorable conditions, the supply of goods of inadequate quality, delays in payments.
  2. Abuse of power or authority. No wonder they say that power spoils a person. If you want an employee to prove himself – empower him. Of course, not every employee can be called dishonest, but as the level of income and responsibility rises, as a rule, so does the demand. Various factors can induce the commission of fraudulent actions – circumstances (personal, financial), the desire to receive more income on a regular basis, etc. And all this becomes possible against the background of the fact that a person is the bearer of a number of organizational and administrative functions – he has the right to sign documents, financial statements, is a confidant of the head of the company, etc. Some phenomena of abuse of power or authority bear signs of a criminal offense, so this cannot be left unpunished.
  3. Fraud based on imperfect legislation. It is easier to understand what these fraudulent schemes are with an example. In the past two decades, IT companies have been actively developing. But not every programmer who specializes in software development registers his copyrights or licenses his activities. The result is a product that brings a lot of profit, is used by other people and it is almost impossible to prove authorship.
  4. Involvement of a subordinate in a criminal fraud scheme. The subordinate may not even be aware of his participation in the so-called “gray schemes”. This happens for various reasons – unconditional trust in the authorities, the desire to get rich, the ability to move up the career ladder. Even personal debt, ambition, or resentment against management can become triggers in these situations.

And these are not all types of fraudulent schemes that are found in modern business, but, as practice shows, they are the most popular.

How can we resist this? First of all, it is necessary to be 100% sure that specific people are engaged in fraud, and then only to suppress their actions and apply measures of responsibility. Various measures are used to combat fraud:

  • preventive nature;
  • disciplinary action (up to and including dismissal);
  • penalties;
  • bringing to civil, administrative or criminal liability.

Мошенничество в компанииHow do you know if your employees are cheating?

ForensicPro specialists recommend conducting a total audit at least once a year, which will allow not only assessing the financial and legal situation of the company, but also promptly identifying illegal, illegal actions, finding fraudsters and taking appropriate response measures.

How do you know if a company needs verification? Here are a few signs to watch out for:

  • recently, many so-called flagship projects have appeared, which are carried out under special conditions;
  • embellished reporting;
  • nepotism (the company employs relatives or close friends who closely communicate with the same friends or relatives who are contractors or competitors);
  • individual employees live “beyond their means”;
  • a sharp decline in the company’s efficiency and loss of market position.

If at least one of the above signs is present, it is necessary to check. To do this, it is recommended to contact third-party, independent companies that will fully, objectively and comprehensively conduct an audit, draw up an impartial opinion.

Internal investigation from ForensicPro specialists

Our company is fundamentally different from competitors. Firstly, we are the first on the Ukrainian market to offer services of a narrow profile – investigation of intracorporate fraud. Secondly, we have lawyers and financiers with many years of experience in our staff. Thirdly, representatives of small, medium and large businesses trust us and turn to us for help again and again.

What we offer our clients as part of an internal investigation:

  • an objective assessment and detailed analysis of the risks of fraud and corruption within a separate company in accordance with Ukrainian legislation and international law;
  • development of recommendations for improving the security system and improving risk management tools;
  • assistance in the implementation of anti-corruption policy;
  • financial audits, legal audit;
  • collection of necessary information and evidence;
  • search for the perpetrators;
  • assessment of the company’s profitability;
  • establishment of the damage caused;
  • compensation for harm.

And this is far from an exhaustive list of services offered by our company. As they say, trust, but verify. For your business to be profitable, your reputation remains unblemished, you need to regularly audit. Timely identification of intruders and exposure of gray schemes will help protect your business and minimize risks.

Let’s summarize. Corporate fraud does not only lead to financial losses. In some cases, a deterioration in the market position, a damaged reputation, together with other minor factors, can even lead to bankruptcy. Not only small and medium-sized businesses need forensics. It is better to entrust the implementation of such a complex of activities to specialists, even if you have your own staff of lawyers and security service.

ForensicPro is the guarantor of protecting your business.

Categories: Blog

0 Comments

Leave a Reply

Avatar placeholder

Your email address will not be published. Required fields are marked *