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Article: Defence mechanism: it's impossible to eradicate the threat of fraud, but there are several steps that employers can take to minimise this very real risk. David Cafferty and Judy Finn offer a strategy aimed primarily at deterring would-be offenders. (How to: prevent fraud).(Statistical Data Included)
- Article from:
- Financial Management (UK)
- Article date:
- September 1, 2002
- Author:
CopyrightCOPYRIGHT 2002 Chartered Institute of Management Accountants (CIMA). This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Fraud has rarely been out of the headlines this year, as millions have been lost as a result of the activities of a small criminal element. It's tempting to think that it'll always happen to someone else, but fraud can strike anywhere and at any time. According to recent surveys by PwC and Ernst & Young on fraud affecting major companies:
* Seventy per cent of large firms in the UK have been the victims of economic crime in the past two years.
* The combined impact of the worst fraud suffered in one year by 739 respondents to an international survey was $172 million, an average of more than $230,000 for each company. Of this, only $49 million had been ...