‘Organisations Lose $6.3bn to Fraud Annually’

• ‘Organisations Lose $6.3bn to Fraud Annually’

About five per cent of losses incured by organisations annually is traceable to fraudulent acts, with an estimated figure of $6.3 billion forfeited to fraud on an annual basis while only 12 percent of victim organisations are fortunate to have recovered all losses.

This was disclosed by the Association of Certified Fraud Examiner (ACFE) Lagos chapter at a seminar recently.

The association reckoned that as much as fraud exists, it will continue to threaten the lifespan of a businesses as well as the stability of country’s economy, hence, the need to attend to it holistically.

In his remark, forensic expert , Beulah Adeoye while treating the theme of the seminar: “Anatomy of Fraud: Understanding and Preventing Bribery and Corruption,” submitted that a deep knowledge of fraud, which is carried out deliberately ,was needed to effectively tackle the scourge.

He added also that bribery and corruption which had become pervasive in the country was ripping off massive investment in the private and public sectors,thus denying the nation of necessary development.

Quoting the World Bank, an expert, Don Ogbonnaya, said: “The World Bank Group considers corruption a major challenge to its institutional goals of ending extreme poverty by 2030 and boosting shared prosperity for the poorest 40 percent in developing countries.

“About $1 trillion is paid each year in bribes around the world, and the total economic loss from corruption is estimated to be many times that number. This figure dwarfs the value of all development assistance. The harm that corruption causes to development is, in fact, a multiple of the estimated volume, given the negative impact of corruption on the poor and on economic growth”

Adeoye agreed that bribery and corruption can be prevented by following certain principles he listed as:due diligence, risk assessment, proportionate procedure and top level committment.

The President of ACFE Lagos Chapter, Godwin Oyedokun,said that it was imperative to take its members through the nooks and crannies of fraud to effectively address it for whichever organisation they represent.