Let’s be blunt. Procurement fraud is a problem. Orders and purchase procedures are one of the most vulnerable areas of corruption. The scale of irregularities and abuse in the procurement area is large. In fact, procurement fraud is the second-biggest economic crime after theft. Estimates suggest that businesses can
Tag: Unmasking Procurement Fraud
A few years ago, PwC announced that procurement fraud was the second-most commonly reported economic crime worldwide. It’s a broad term, covering everything from bid rigging and supplier collusion to duplicate invoicing and expenses fraud. In a nutshell, though, it’s what happens when your employees or supplier network fiddle the
You don’t very often hear about procurement fraud. It’s not really discussed, perhaps because it is often an internal problem, and therefore involves trusted employees and breaches of that trust. In terms of losses, however, it is the second-most important economic crime in the world. The average amount lost in
Every day, billions* are spent on equipment and services to run operations, maintain asset life cycle and develop new business. Procurement is big business, and that makes it an attractive target for criminals. PwC estimates that almost 30% of organisations have been hit by procurement fraud in the last year.
Internal audit departments are not often thought of as consumers of high impact analytics. But our recent experience suggests otherwise. Many are working on improving their procurement integrity and in these scenarios they want to detect — and stop — fraud, loss, abuse or waste in procurement. They also want
Does procurement integrity really matter? Fighting procurement fraud and optimizing procurement cycles is difficult, not least because it often involves employees. Asking your employees to police each other can cause problems, because it implies a lack of trust, and trust is what relationships are built on. If you undermine the