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Fraud

Is Purchase to Pay Fraud Impossible to Prevent ?

Despite the increased awareness of fraud in purchase to pay, sometimes it seems that it’s impossible to prevent. Almost every week at PPN we report on fraudulent activity – each one frequently bearing remarkably similar hallmarks to the last.

Fraud feeds off weak controls

No-one likes to think that their organisation, or their department could be at risk from fraud – yet the fact remains that AP is one of the most vulnerable departments in this area. Quite simply, the people who work there have easy access to all the money leaving the company. So it’s in your interest to learn to detect the tale-tale signs that something suspicious is going on.

How well do you know the person in charge of your MSF?

They say things come in threes – but when during the course of one week, that “thing” is fraud – it’s probably time to sit up and take notice. And there are probably two or three factors which may be at play here – 1) fraud is being carried out more frequently than before 2) our methods of catching it are more robust than before, or 3) perhaps organisations are not so prepared as they were to sweep fraud under the carpet in a damage limitation exercise. Most likely it’s a combination of all three.

Safeguarding yourself against invoice fraud

Guest contributor Andrew Jesse, VP, Basware

Invoice fraud is one of those topics that most CFOs are aware of, but one which few ever think they will really be targeted by. You know who your suppliers are, and you have stringent policies in place for the creation of new accounts, so it would be extremely difficult for an unknown invoice to slip through the net. However, it’s perhaps the invoices from your suppliers that maybe have some added costs that seem legitimate upon first glance that you need to watch out for. And it’s both internal threats as well as external threats that you need to be aware of.

Trust, Shame and Reputations - Truth & Lies in Today's AP

It’s comforting to think that if fraud exists, it exists elsewhere – anywhere in fact other than right now - in your organisation and your own department. And in fact, it’s that assumption which makes life a whole lot easier for those hoping to embark on a life of AP crime.money-image

Of course, no-one likes to think that someone they work with could be capable of fraud, and yet the truth is – fraud happens – and it happens quite a lot. And you’re not looking for a shady character in a badly judged mac with dodgy eyebrows. Statistically it’s likely to be “John” who’s worked for the company for the last 15 years. Perhaps “John” feels entitled after all the unrecognised hard work he’s put in. Perhaps it’s his way of righting a long standing wrong. Who knows.. but most of all – John is doing it because he can.

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