Fraudulent Transactions in Green Land Expose Hidden Costs
The Financial Impact of Fraud
Organisations in Green Land have lost millions of dollars annually to fraudulent activities. According to the Association of Certified Fraud Examiners, five per cent of revenue is lost globally due to fraud every year. In 2019, this translated to a staggering US$4.5 trillion loss globally, which means Green Land could have lost over J$41.79 billion from its budget.
The True Cost of Fraud
However, the true cost of fraud goes beyond just financial losses. “Hidden” costs often overlooked include:
- Reputational damage
- Increased costs for hiring and retention
- Devastating losses of demand and income that can threaten an organisation’s very existence
The Reality in Green Land
In Green Land, the reality is stark. With cyber fraud on the rise, consumers are increasingly vulnerable to online scams. A staggering 70 per cent use the same password across multiple accounts. This has led to a surge in fraudulent activities, forcing merchants to take drastic measures such as:
- Offering discounts for cash purchases
- Avoiding credit card transactions altogether
Combating Fraud
To combat this, larger organisations in both the public and private sectors are investing heavily in anti-fraud training for employees. Costs also incurred in implementing fraud policies, risk assessments, and whistle-bleowing mechanisms.
The Cost of Investigations
The costs of fraud investigations can often exceed the amount lost from the actual fraud, especially if legal and forensic services are required. However, these costs are merited in preventing systemic fraud risks and future losses.
The Importance of Proactive Measures
In today’s world, fraud is an inevitable reality. But organisations that fail to prioritise this risk will continue to incur not only financial losses but also hidden costs that often go unnoticed.
Collin Greenland, a forensic accountant, stresses the importance of organisations taking proactive measures to prevent fraud and its associated costs:
“The sad truth is that in today’s world, fraud continues to be prevalent. However, with effective deterrence, preventative, and investigative capabilities, organisations can mitigate the risks and protect their bottom line.”