By Robert Lemos
Nov 01, 2010
IT managers spend a lot of their time dealing with malicious code and
violations of corporate policy, but insider fraud in the workplace is a
major problem that frequently shows up on their radar screen, as well.
In 2009, the average company lost nearly 5 percent of its revenue to
fraud perpetrated by employees, according to the 2010 Report to the
Nations on Occupational Fraud and Abuse (PDF). Asset fraud -- stealing
company resources -- represented 90 percent of the incidents, but only
averaged $135,000 in losses per company. On the other hand, financial
fraud makes up only 5 percent of all cases of corporate fraud, but it is
the most damaging, with a median loss of more than $4 million, according
to the report, which is published every two years by the Association of
Certified Fraud Examiners (ACFE).
Employees can be tempted by their privileged access to data, says Ben
Knieff, director of product marketing for fraud products at Actimize.
"They have a high level of access, which gives them a greater
opportunity to commit fraud," he says.
The report found that 85 percent of fraud was committed by individuals
with no prior records of abuse. Even so, there are a number of proactive
steps that companies can take.
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