Respond to allegations of fraud and illegal acts

The price of fraud

Fraud does more than dilute the bottom line: it betrays shareholder trust, erodes employee morale and mars public perception of your brand. Without mechanisms in place to counter financial wrongdoing by insiders, the fallout can give stakeholders serious, perhaps relationship-ending misgivings and jeopardize your business. But prosecuting isolated acts of malfeasance falls short of the mark. A superior strategy scrutinizes areas susceptible to exploitation from the ground up, identifies their inherent vulnerabilities and eliminates opportunities to exploit them.

 
Watch our discussion around how to work with the SEC in the event of a whistle blowing investigation
 
Fraud and illegal acts can deal any organization a devastating blow. The damage can be even more egregious when employees are at the root of the crime, sowing serious financial, operational, and reputational consequences in their wake.

Raising your anti-corruption IQ

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What rationalizations might open your operations to inside threats?
  • Everyone pays bribes to make sales in that country; there is no other way.
  • Cooking the books or 'creative accounting' is not fraud; it’s just bending the rules.
  • I’m the only one left in my department after redundancies. I have to do all the work and haven’t had a raise in two years. I deserve the money!

Do you know the hidden attitudes that can sabotage your efforts to operate effectively in a secure environment?

 
Estimated revenue loss attributable to fraud

5%

1 2 3 4

An ounce of prevention

All too often, fraud is discovered too late. In some cases, its damage is irreversible. Managers should never take the entity's security for granted. Compliance with regulatory requirements is not enough, and internal controls, susceptible to collusion within the organization, can be circumvented, creating further vulnerabilities. PwC's Forensic Service professionals help neutralize such threats to keep fraud in check.