As the economic downturn continues to bite all businesses and
organisations must remain alert to the potential for fraud.
Entrepreneurial owners of SME’s are a prime
target for fraud as overseeing finances doesn’t always come naturally to them.
If a founder is focusing mainly on the product or service being sold, and only
minimally on administration, it leaves a business vulnerable to fraud.
It is vital to have systems in place to
monitor all the company’s finances in a clear and concise format. After all it
is never comfortable experience to find that someone is holding your wallet.
However all businesses be they independent or
large corporations are vulnerable.
As the story of fraudulent LIBOR rate fixing
at the Banks unfolds so the call for those responsible to face criminal charges
gathers momentum.
Last week a senior potato buyer at J.Sainsbury
Plc was found guilty of orchestrating a fraud whereby a four-year police
investigation revealed that £4.9m was paid out of a fund created by the
overcharging of Sainsbury's. The total amount the supermarket says it was
overcharged by was £8.7m.
It is an undeniable fact that there will
always be people trying a variety of ways to “scam” your organisation; it is a problem that will not go away so vigilance is the order of the day.
No comments:
Post a Comment