Beating Back Fraud

The right mix of technology and processes reduces the risk of major losses.

Businesses and their banking partners are devoting more resources and attention to the ongoing fight against financial fraud than they ever have before. And for good reason. "No company is immune," observes David Santoro, a Yardley, Pa.-based partner in Accenture's finance and performance management practice. "The methods used by thieves to commit fraud are growing rapidly, and there's no end in sight." Mark Gibson, director of product management with Costa Mesa, Calif.-based Experian Fraud Solutions, agrees. "Fraud is pervasive across every industry," he observes. "It is a substantial threat that companies must focus on."

Today's criminals leverage powerful technologies to exploit weaknesses in treasury practices. "Technology and computers have raised the stakes and made it possible to commit fraud faster and more effectively," reports Ken Yormark, managing director of the financial investigations and litigation consulting group at Protiviti Inc., an internal audit services provider and risk consulting firm in New York City.

To fight back, companies need aggressive controls -- including strong authen-tication systems and banks' positive pay services -- that help them verify identities and prevent unauthorized access to critical data. And they're increasingly turning to fraud detection software that incorporates sophisticated predictive analytics that can ferret out thieves.

Today, anything less than a total commitment to fraud prevention will result in unnecessary losses. While there's no cookie-cutter solution, an organization that deploys the right processes and tools can minimize its chances of ending up a victim.