Here is the rewritten article in markdown format:
Jamaica Struggles with Rising Tide of Fraud: Calls for Proactive Measures
Fraud has become a major concern in Jamaica, with its devastating effects on individuals, charities, and non-governmental organizations (NGOs). The intentional use of deceit or dishonest means to deprive others of their money, property, or legal rights is a growing problem that requires immediate attention.
Understanding Fraud
According to experts, fraud occurs when three elements come together:
- An incentive or pressure to commit fraud
- A perceived opportunity to commit fraud
- The ability to rationalize the action
The perceived opportunity often involves weaknesses in processes or procedures to protect assets from loss, technical skills, and a perception of low risk that the fraud will be detected.
Risks of Fraud
Fraud risks can arise both internally within an organization’s activities and externally through external factors. Entities with weak governance structures and systems are more vulnerable to fraud, which can lead to:
- Financial losses
- Reputational damage
- Lost productivity
A recent report by the Association of Certified Fraud Examiners (ACFE) revealed that 23.2% of reported cases involved losses of at least $1 million, with a median duration of 18 months.
Categories of Occupational Fraud
Occupational frauds can be classified into three primary categories:
- Asset Misappropriations: theft or misappropriation of assets
- Corruption: bribery, kickbacks, and other forms of corruption
- Financial Statement Fraud: manipulation of financial statements to deceive stakeholders
Combating Fraud
To combat the growing problem of fraud, experts recommend implementing proactive anti-fraud controls and detection methods. These include:
- Independent review and monitoring of systems
- Inspection of assets
- Cash counts
- Other measures that are maintained and monitored throughout the year
The presence of these proactive controls has been shown to result in lower fraud losses and shorter fraud duration compared to passive controls such as external audits.
Expert Assistance
AMCS, a Jamaica-based accounting firm, assists entities with designing, implementing, and monitoring systems to reduce the risk of fraud. They also provide fraud investigation services to help organizations recover from fraudulent activities.
Conclusion
As the situation continues to unfold, it is essential for organizations in Jamaica to take proactive measures to detect and prevent fraud. By doing so, they can protect their assets, reputation, and stakeholders while maintaining a strong foundation for growth and prosperity.