There has always been a case in our life when we have been deceived or scammed and not only us as individuals but us as a group and this often damages us. No one likes unfair competitions or disadvantages but some people think otherwise and deceive other people in order to get what they want .These people are called frauds as they benefit from others trust and in the end hurting them mostly in the financial side. Why do these people do this ? Sometimes they do it for the thrill of it for the sheer experience, some other do it because they need to. This comes as a result of financial problems due to many reasons such as divorce,lavish lifestyle,business loses,debts etc. This calls for a solution and the best one is a fraud department. An analyst group who investigates forgery and theft within customers accounts and transactions on behalf of the institution. They track and monitor the financial transactions and the activity that comes through their accounts.

Economic problems

Fraud is costing society several hundred billion a year. Organizations lose close to 6 percent of annual revenue to fraud and abuse of social systems. Fraud costs Canadian organizations $100 billion annually. On the average, organizations lose $9 dollars a day per employee to fraud. A study done by the insurance industry indicates the groups most likely to commit fraud. The most typical person who may commit fraud is a college/university educated white male. Men were responsible for almost four times the fraud as were females. Losses caused by people with postgraduate degrees were five times greater than those caused by high school graduates. Fifty eight percent of fraud is committed by employees, which averages $60,000 per case. Twelve percent of fraud is cause by owners, which on the average costs the insurance companies $1 million per case. It affects bank rates, insurance rates, credit card rates, and product costs. All companies that suffer losses factor in the loss to the premium and price the consumer pays. Fraud is on the rise and the resources to combat it are on the decline, thus making fraud investigators jobs that much more important. Many crimes, particularly those which are non violent crimes are going unattended by the police because they just don’t have the manpower to combat it. They are willing to look into fraudulent claims but as of recent they lack the time and resources to give these crimes all the attention they require. The police are now working in co-operation with insurance companies, corporations, and investigators to try to combat this ever increasing crime. Fraud investigators are required to have a police background and a real understanding as to what fraud is, how it relates to the criminal code, and how to identify it. A fraud investigator must investigate allegations of fraud. The investigation may require that the investigator collect evidence, take statements, maintain continuity of evidence, analyze the scam, prepare court briefs, work with the authorities, testify to findings in court, assist in the detection and prevention of fraud and white-collar crime. Fraud investigators must have an extensive educational background. A bachelor’s degree in criminology is recommended, a minimum of eight year experience in a related field and actual experience in uncovering, documenting or investigating fraud matters is needed. There is not nearly enough personnel to combat the ever increasing problem of fraud.

These employees are more inclined to steal the cash, inventory and fixed assets of the company. The price of gas has increased dramatically, costing employees more to get to work. Some employers, including municipalities and governments, are considering four-day work weeks to survive these costs and assist employees as they grapple with these costs. External Threats The retail industry is experiencing an increase in theft by customers. Customers seem to be most interested in stealing items that are easily converted to cash. Other companies are finding that they are becoming the victim of check fraud at the hands of perpetrators who have obtained their check stock, bank account numbers and routing information. It’s no longer a matter of “if your accounts become compromised, but when they are attacked.” As people become more desperate, their schemes become bolder, regardless of the consequences. Managing Your Risks If your organization hasn’t updated its risk assessment in a few years, now is the time. With the economic downturn and the steep increase in wholesale product prices, your company may find itself vulnerable in areas that have previously gone unnoticed.