Badly-implemented or outdated IT isn’t simply a pain for the IT pros who have to manage it and the end users who have to grapple with it. It also makes it much easier to carry out fraud.
Construction picture from Shutterstock
An advisory note from chartered accountants Grant Thornton on causes of fraud in the construction industry highlights how a lack of modern technology is a major problem: “The Construction industry in Australia is 10 to 15 years behind the curve in the use of technology. Investing in technology can be the key to battling fraud.”
“Although perpetrators of fraud use technology to help them falsify payment applications by creating fictitious vendors, on the whole technology advances favour those investigating fraud,” the report adds. “There are software and systems available that will create red flags to help companies identify possible fraud. These systems, coupled with the power available in today’s microprocessors, have made it possible for many companies to combine large amounts of data to identify threats or possible weaknesses in controls.”
Even if you’re in an entirely unrelated field, there’s a lesson here. When calculating return-on-investment, don’t forget to factor in the potential to eliminate other sources of loss.