Online training and reference materials for information security
The Impact of Fraud
Fraud continues to increase and shows no signs of slowing down. According to the BDO Fraudtrack 7 survey, the total cost of fraud in 2009 broke the £2bn barrier for the first time.
What are the fraudster's targets?
Information and systems
Property
Reputation
Potential
People
What are the threats to your Company?
Financial Fraud
Organised crime
Industrial espionage
Computer crime
What are the threats to your systems?
Human error or ignorance
Fraud and theft
Social engineering (ie using deception to breach security through e-mail, telephone or face-to-face communication).
Identity theft
Industrial espionage
Why are organisations vulnerable to the damage that can be caused by fraud?
The attention of the regulators
An increasingly competitive and hostile marketplace
A high profile and attractive target
A large organisation (geographically spread?)
Significant change throughout the organisation
Reliance on information technology
Move from mainframe technology to distributed client-server applications architecture
Increase in the use of e-commerce and the Internet
Globalisation of the economy means doing business with strangers
Attitudinal change and a general decline in respect for the law
Corporate restructuring has affected job security and loyalty to the organisation
Corporate restructuring has “delayered” management, eliminating controls and reducing supervision
Targeting of business by organised criminal networks
The low risk of detection and reluctance to report
The lack of punishment
What are the impacts?
Direct
Financial loss (revenue and capital)
Damage to the credit rating
Breach of regulation or law
Indirect
Damage to reputation
Loss of customer confidence
Loss of shareholder confidence
Loss of management control
How can organisations protect themselves from the damages of fraud and create a culture that is vigilant towards all aspects of security?
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