Fraud comes in all flavors

Fraud acceptance raises risk and cost versus the cost of prevention

FRAUD

Kyle Chastain CPA, CMA, MBA

7/19/20241 min read

Fraud is undeniably costly and manifests in various forms. The risks associated with fraud significantly outweigh the cost of prevention. When acquiring a company, it is imperative to verify the accuracy of its financial statements rigorously. Occupational fraud, corruption and asset misappropriation, escalate in cost with the length of a fraudulent individual's employment.

Today, people have many unfortunate economic factors to feel anxious about. A survey from Intuit found that 73% of Gen Z Zoomers feel that the current economic environment has made it more challenging to save money. They’re struggling with increased housing costs, student loan debt, and rising prices on everyday purchases like groceries, all while wages have stagnated for workers across many income levels.

These factors snowball into a financially stressful situation that makes it more challenging to afford day-to-day necessities.

But facing the wrong circumstances, some people will turn to fraudulent schemes. They may rationalize fraudulent behavior by convincing themselves that their actions are necessary or justified given the economic environment. They may view their actions as a temporary solution or even as a moral gray area with few consequences for anyone.

Finding or preventing fraud doesn’t always require a certified audit. For a fraction of the cost of a full audit report, a skilled professional can perform an internal review to determine if control weaknesses exist.

Contact KChastain@PBI-Now.com to learn more.