Fraud is one of the top three concerns keeping CFOs and treasurers up at night, having increased in importance due to the proliferation of spear-phishing, data breaches, and the resulting loss in company value attributed to successful fraud attacks.

  • 53% of companies have been the target of financial fraud*
  • Half of companies targeted have suffered financial losses as a result* 
  • Internal fraud is 36% more common than external fraud*
  • The average loss for internal financial fraud is $1,971,000 with a median loss of $451,000*
  • The average loss for external financial fraud is $887,000 with a median loss of $114,000*

*All data sourced from Kyriba / Association of Corporate Treasurers 2015 treasury survey

In addition to the direct financial losses, the indirect losses can be devastating. Falling stock market value, loss of confidence from investors, customers and partners, lawsuits and fines are all possible. The reputations and careers of you and your colleagues could also be in severe jeopardy. You needn’t become the next victim. We aim to outline how the Kyriba Enterprise SaaS treasury management system, combined with a more educated, better-trained treasury team, can prevent both internal and external fraud within their organization.

What types of financial fraud should you be concerned about?

There are a broad range of both internal and external threats that face the integrity of an organization’s corporate cash. In order to understand how your organization can become more secure, it’s critical to know what vulnerabilities you may be exposed to. Examples of vulnerabilities include:

  • External hacking of treasury systems and files by third parties, by exploiting data security flaws.

  • Inappropriate employee access to server rooms / internal networks, resulting from weak physical and data security processes.
  • Fraudulent payments sent by employees to bank, both willfully or based on bad judgment (often as a result of social engineering, “phishing” attacks).
  • Fraudulent purchase orders and invoices created by internal employees to related third parties.
  • Settlement instructions direct funds to unauthorized accounts.
  • Suboptimal financial trades being made by employees in return for personal gain.
  • Non-employees remaining signatories on current bank accounts after their departure / termination.
  • Infrequent or inefficient reconciliation of accounts, leading to fraudulent transactions remaining unnoticed.

To discover Six ways to prevent financial fraud with Kyriba Download The Full eBook… 

6 Ways to Prevent Financial Fraud
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