Organizations globally lose approximately 5% of annual revenue due to criminal activities.
By Kenneth Araullo
As part of its initiative for International Fraud Awareness Week, the National Insurance Crime Bureau (NICB) is urging the public to familiarize themselves with emerging fraud trends to avoid becoming victims.
The initiative comes in the wake of a study by the Association of Certified Fraud Examiners (ACFE) which revealed that fraud costs organizations globally an estimated 5% of their annual revenue, translating into billions of dollars every year. goes. Fraud not only wastes government resources but also undermines public trust and causes financial and emotional harm to its victims.
“Fraud is an issue that unfortunately affects people from all walks of life around the world and it takes many forms,” said ACFE President John Gill. “Whether it’s a trusted employee stealing from a small business, or organized groups of fraudsters targeting seniors in our community, most people know someone who has been a victim of fraud. That’s why it’s so important for organizations to join together in this fight to raise awareness during this week. “This is a serious problem that requires a proactive approach to prevent it and educating people is the first step.”
Joint efforts between governments and businesses are necessary to effectively combat fraud. It is important to strengthen fraud detection and prevention measures in both the public and private sectors. Governments can play an important role in enacting and enforcing stringent laws and regulations that prevent fraudulent activities, ensuring quick and efficient prosecution of criminals.
Additionally, each state offers fraud reporting hotlines, helping consumers report illegal activities and contribute to the fight against fraud.
NICB President and CEO David J. Glawe stressed the importance of increased awareness and education to combat the sophistication of modern fraud tactics.
“By understanding the far-reaching effects of fraud and taking proactive steps to prevent it, individuals and businesses can limit their exposure to this threat and reduce the enormous financial loss it inflicts on us all,” Glewe said.
Glawe also pointed out that while technology has given rise to new forms of fraud, it also provides innovative tools to combat it. Advances in artificial intelligence, machine learning and data analytics are proving effective in detecting and preventing fraud, with their use expected to double in the coming years.
What are your thoughts on this story? Please feel free to share your comments below.
Stay up to date with the latest news and events
Join our mailing list, it’s free!