Fraud and the 20% solution

There is far more to fraud detection and prevention than accounting forensics and controls. Steve White of Control Risks Group argues that companies need to adopt a much wider definition of fraud risk if they are to counter it effectively.

What exactly is fraud?

If asked this question most people would cite examples of white-collar crime such as manipulation of accounting records or falsification of cheques. Whilst such accounting-based activity is indeed an aspect of fraud, it is by no means the only one. In fact I would argue that it is a minor aspect. The problem is that over-dependence on accounting solutions is undermining fraud risk management in general.