Data breaches, hacking and external fraud attempts against Target, Sony and The Home Depot illustrate the need to safeguard against external fraud risks. Specific control issues increase risk, but measures can be taken to reduce exposure to external attacks.
Until recently, many organizations discounted risk related to external fraud attempts. Most were only concerned with protecting physical assets such as inventory or fixed assets. Now, due to such highly publicized corporate hacking events, more attention is being paid to external fraud risk of all types.
We’ll examine external fraud, and delve into specific control issues that give rise to increased risk. Also, discuss measures that organizations can employ to reduce exposure to external attacks.
Define external fraud.
Identify control issues that can give rise to external fraud occurrences.
List ways to reduce external fraud risk.
Types of external fraud
Considerations as organizations work to reduce fraud risk
External fraud and known parties/External fraud unknown perpetrators
Business and financial professionals.