PREAMBLES

• The greatest challenge facing the banking industry globally today is fraud.
• The banking industry loses billions of dollars annually to fraudulent activities.
• Some of the frauds are executed successfully by outsiders while a reasonable number is successfully perpetuated with the connivance of an insider/staff.
• Anyone can perpetuate a fraud.

FALSE ASSUMPTION ABOUT FRAUD

Below are some false assumptions about fraud:

1. Most people will not commit fraud.

Response: A vast majority of people, under certain circumstances, will commit fraud especially if they are convinced that it will go undetected. Therefore everyone should be assumed to have a tendency to commit fraud.

2. Fraud is not material.

Response: Fraud is very material and it is capable of eroding the working capital of any organization which consequently results to illiquidity and insolvency. Continue reading »