When a director of alliances at Microsoft was indicted in 2018 for diverting $1.4 million in fake invoices to personal accounts it garnered global attention. Today, this kind of activity is commonplace.
For contemporary businesses, fraud accounts for up to 5% of annual revenues. Procurement and Accounts Payable functions emerge as primary conduits for misappropriated funds within organizations processing millions or even billions of transactions annually. Amidst this sea of transactions, distinguishing fraudulent activities from legitimate ones resembles the proverbial search for a needle in a haystack. Leaders in Finance and Accounting must find ways to efficiently and effectively mitigate risks.
Avoid Procurement Frauds
Enter Continuous Controls Monitoring (CCM), a pivotal tool empowering Finance and Accounting leadership to safeguard against prevalent procurement loopholes exploited for fraudulent activities. By implementing rigorously monitored controls, organizations can effectively close off key vulnerabilities, such as:
- Unauthorized modifications to vendor master data leading to payments to the same vendor
- Generation of invoices lacking corresponding receipts
- Approval and execution of duplicate payments
- Instances of vendor overpayment or duplicate payments
For those keen on discovering how leading enterprises like Microsoft, Jabil, NBCUniversal, and BP avoid procurement frauds by harnessing continuous controls monitoring to fortify their defences against accounts payable and procurement fraud, we invite you to delve into this Pathlock eBook.