Fraud prevention

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Often, corporate reputation is stained by fraud perpetrated inside the company. Instances of corporate fraud are more widespread than official data show and they expose companies to risks that lead to losses, brand damage and deterioration of business relationships. Misappropriation of funds and other kinds of embezzlement can be cleverly concealed through hidden accounting manipulation and by falsification of information which is not detected by systematic controls. Remedying material and reputational damage is difficult for companies, therefore it is useful to manage fraud risks before they happen.

How can we help

In these circumstances, analyses performed by a specialized team minimize the probability of fraud occurring and mitigate the risk of direct losses and outlays due to legal actions. That means prevention protects the value of the company.

The Fraud Prevention Team of PwC Forensic Services, together with the Risk Assurance Team, has extensive experience in the development of anti-fraud programmes and Fraud Continuous Monitoring for market leader corporations and multinational groups. Thanks to the wide range of fraudulent schemes we have analysed in the past and thanks to our distinctive industry competences, we know well the typical risks of our clients’ various businesses and we are able to anticipate fraudulent actions.

We assess internal control weaknesses on a case-by-case basis and we work with clients to understand the most vulnerable areas. After that we define and implement ad-hoc anti-fraud programmes.

Our goals are: to make corporate assets secure, to ensure correct and efficient operations, to avoid irregularities and to spread an anti-fraud culture among employees.

Our services include:

Fraud Risk Assessment

We define the fraud risks matrix typical of your business or of your organisation, through an impact/probability approach, applying customised and user-friendly valuation models, which allow a transparent, documented and objective evaluation. In our evaluations we set tolerance thresholds in a cost/benefit perspective.

Gap analysis e remediation

Starting from the fraud risks matrix, we identify existing anti-fraud measures. We identify any weaknesses, vulnerability profiles and operating inefficiencies and we report the possible consequences, highlighting the areas to be addressed and the most appropriate measures and strategies. We support you during the implementation of a remediation plan and in monitoring its effectiveness.

Training and corporate culture

We can help you develop a training programmes and make personnel aware of fraud risks. We can tailor training programmes to suit different qualifications and corporate functions.

Fraud Risk Governance

We support you during the definition of financial crime policies and is supplementing existing procedures with control mechanisms suitable to prevent and detect potential fraudulent behaviour.

Fraud Continuous Monitoring/Auditing

We develop systems to monitor corporate transactions, based on data analytics and data mining techniques, translating the fraud risks to which your company is exposed into Key Risk Indicators. Our corporate monitoring systems are designed to detect anomalies, irregularities and suspect fraud, through an automated, computer-based analysis of transactions recorded in your accounting system.

The advantages of Fraud Continuous Monitoring are:

  • automated controls and warnings
  • optimization of monitoring frequency in accordance with corporate needs;
  • a user-friendly interface
  • monitoring of 100% of relevant data (in lieu of the traditional sample testing approach)
  • an investigative approach that combines data of different nature and origin in order to detect events which would not be identified immediately through traditional controls