Fraud Now and Then
Fraud has been a problem since time immemorial. The earliest recorded attempt of fraud brings us back to 300 B.C., when a Greek merchant attempted to commit insurance fraud by sinking his ship to avoid paying a lender.
In 1911, a fraudster connived with a Louvre employee to steal Leonardo Da Vinci’s Mona Lisa in order to sell his fakes.
Today, 13% of companies that were victims of fraud reported losing more than $50 million across all incidents. Fraudsters attack from all angles. They could be company insiders, external perpetrators, or the collusion of criminal minds. In addition to that, their modus operandi is becoming more advanced and sophisticated.
Fraud Across Industries
Fraud does not spare anyone. If you run a business that deals with any valuable assets and regular financial transactions, you are at risk. The impact of fraud goes beyond losing money. If fraudsters snag you, your reputation can be damaged, resulting in poor customer conversion, retention, and experience. Below are some of the sectors in which we customize the Aquila platform to prevent and detect fraud
The insurance industry is a big target for fraudsters. With over 7,000 companies collecting over a trillion dollars worth of premiums annually, this sector has a long pipe that bad actors can punch a hole through. Non-health insurance fraud per year costs $40 billion. The schemes vary from premium diversion and fee churning to worker’s compensation fraud, provider fraud, and more.
The government – be it local, state, or federal – is susceptible to fraud. They have their own struggles in terms of fraud detection. In a recent study, 51% of respondents said they only rely on a simple online search to vet contractors or screen vendors. Cases such as welfare fraud, EDD unemployment fraud, tax fraud, and recipient fraud are still rampant. Sadly, these problems cause public trust to nosedive.
Companies face various problems and often rely on their human resources department to operate smoothly. However, HR fraud is also a growing problem. Issues like misuse of company assets and procurement fraud are rampant. Add to these ghost employee schemes, payroll fraud, benefits fraud, and intellectual property theft, and there is plenty of potential for HR fraud.
The manufacturing industry is one of the most vulnerable sectors to fraud. If you belong to this industry, you might be familiar with bid-rigging, price fixation, IP infringement, procurement fraud, warranty claims fraud – and the list goes on.
Fraudsters and other criminal minds converge to target the financial sector. From traditional means of stealing money, the threats have evolved with technology. The scope of fraud in this sector involves identity theft, credit card fraud, fake charities, debt collection fraud, phishing scams, and money laundering, among others.
Protect Your Business from Fraud
Whatever sector you are in, you need to protect your business. Aquila combines artificial intelligence (AI), machine learning, big data, Iot, Blockchain and other future technologies to detect and prevent fraud. Contact us today