When the desire is just too strong
And the opportunity is perceived to be present, Fraud occurs. Fraud
eats away at an organization from the inside out, draining financial
resources, and making the accounting results of all activities into
lies the company will have to deal with later. Although hunting down
fraud well hidden is not as easy as just looking at the accounting,
companies who believe fraud may be a problem in their organization can
resolve to find and destroy it.
Financial Fraud
Financial fraud results when managers, executives, and some internal
groups decide to meet numbers goals any way they can. Today's managers
and executives feel enormous pressure to meet or exceed expectations -
their careers depend on it.
Organizational/White-Collar Fraud
Individuals or groups in positions of power sometimes use that power
for personal gain. Organizational fraud can occur when information
flowing through a company is not completely transparent at multiple
levels and that opacity is used to create a system for personal gain.
Bribery, kickbacks, counterfeiting, money laundering, and embezzlement,
are some examples of White-Collar Fraud common in Asia. 
Intellectual Property Theft
An Organization's IP can literally walk out the door these days.
Maintaining and managing physical as well as IT security policies and
activities that are conducive to information protection is crucial to
making IP theft more difficult and easier to investigate after the fact.
Channel/Partner/Distributor Fraud
Channel fraud is particularly dangerous for companies entering Asia for
the first time. The likelihood of being ripped off by a chosen partner
is directly proportional to the perceived 'distance' between
headquarters and the local market. Creating a manufacturing partner, or
distribution channel in Asia, then simply going home and expecting that
everything will be executed legally and ethically, is asking for
trouble. Various types of fraud routinely arise from this situation,
including unauthorized products manufactures, parallel competing
counterfeits, diverted authentic goods sold in unauthorized markets,
stolen intellectual property, and unauthorized pricing and sales
schemes. Ongoing supervision of distant partners is a key ingredient to
success in partnering or outsourcing overseas.
|
Risk Management Solutions 
