North American businesses not reporting and acting on fraud, ACL reports
More than 80 per cent of respondents said their organizations had “medium to no” exposure to fraud, despite North American businesses losing $6.3 billion to fraud in 2016
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VANCOUVER—Business leaders are turning a blind eye to fraud.
This is according to the 2017 Fraud Survey from ACL, a Vancouver-based risk management software developer that provides fraud prevention services. 500 compliance and risk management professionals from the U.S. and Canada were surveyed.
More than 80 per cent of respondents said their organizations had “medium to no” exposure to fraud, despite North American businesses losing $6.3 billion to fraud in 2016—according to the Association of Certified Fraud Examiners.
63 per cent of respondents reported that a majority of fraud committed in their organizations is not detected, and more than 75 per cent said that at least some of the fraud that is detected goes unreported.
Respondents also admitted to hiding fraud findings from senior leadership, direct managers and peers.
While the survey found that North America’s corporate sector had a poor record of reporting and acting on fraud, government agencies performed even worse, reporting 10 per cent fewer cases than corporate entitites.
Both government and business sited a lack of time and resources as the primary reason for failing to take action on fraud.