Even Santa Gets Caught: Protect Your Business From Holiday Fraud

Fraud isn’t just a financial issue—it’s a reputation killer. According to the Association of Certified Fraud Examiners (ACFE), businesses lose an average of 5% of their revenue annually to fraud. For large organizations, this translates to millions of dollars. Left unchecked, fraudulent activity can damage stakeholder trust, invite legal scrutiny, and derail growth plans.

How Decision-Makers Can Act Now

Prioritize a Fraud Risk Assessment:

Engage forensic experts to conduct a deep dive into financial records and identify irregularities.
Target high-risk areas like procurement, payroll, and accounts receivable.

Review Internal Controls:

Ensure approval workflows are functioning as intended.
Train employees to recognize red flags, such as sudden changes in vendor behavior or unusual payment requests.

Leverage Technology:

Use data analytics to spot anomalies in financial transactions.
Implement AI-powered fraud detection tools to monitor large datasets in real-time.

Strengthen Year-End Audits:

Conduct a thorough review of all financial statements before signing off on reports.
Collaborate with auditors to address discrepancies proactively.

Lead by Example:

Foster a culture of accountability and transparency.
Decision-makers should champion fraud prevention efforts and ensure compliance at all levels.

As the year ends, remember: even a generous Santa can turn greedy when oversight is lax. Protecting your business isn’t just about numbers—it’s about safeguarding trust, reputation, and future growth. Take the proactive route. Conduct a fraud risk assessment, tighten controls, and ensure your business is on the “nice” list for 2024.

Need expert guidance? Schedule a call with forensic expert Dave Oswald and unwrap the gift of financial clarity this season.