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Professional service firms dropping the ball on fraud?

April 5, 2016 / 2 min read

Professional service firms are not immune to fraud. Here are three areas owners often overlook.

According to the 2016/2017 Kroll Global Fraud and Risk Report , 84 percent of professional service firm respondents experienced a fraud incident in the past year.

Moreover, according to the 2016 Report to the Nations by the Association of Certified Fraud Examiners, fraud accounts for an average loss of $150 ,000 per year at these firms. Asset misappropriation and corruption were the most prevalent fraud schemes , and overall, median duration — the amount of time from when the fraud commenced until it was detected — spanned 18 months.

The common thread of both studies – professional firms are not immune to fraud.

Unethical clients can lead to unethical behavior by personnel.

But why are professional service firms so susceptible? Following are the three most common ways professional service firms drop the ball when it comes to fraud prevention.

If you believe you’ve been a victim of fraud, seek legal counsel who can guide you through proper protocol for conducting an investigation, preserving the evidence, and deciding on the appropriate action to take. For more information, give us a call.

For more information on handling fraud, view our recent article on immediate actions you can take if you suspect fraud within your organization.

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