All organizations running ERP Cloud should be concerned about fraud.  The Association of Certified Fraud Examiners’ 2018 Report to the Nation identifies that 89% of fraud is misappropriation of assets such as fraudulent disbursements.  Check and payment tampering represent 12% of all fraud and averages $150,000 per incident.  Lack of internal controls, override of existing controls, or lack of management review represents 69% of asset misappropriate fraud cases.  Fraud is committed by Managers and Staff Employees in 78% of cases. 

The ability to import supplier data through conversion / interface processes is one of the most significant fraud risks organizations face.  In this video, we provide highlights of how such fraud can be committed.  We were careful to disclose too much information about how this scheme can be executed.   Our assessment is that most IT users and external resources have the knowledge or can easily develop the knowledge how to execute this scheme.  The ability to execute this type of fraud can be found in 29 seeded roles including the seeded Employee role and the seeded Contingent Worker role.  Additionally, it can be found in 5 Payables roles, 6 HCM roles, 10 SCM roles, 3 Tax roles, and 4 Implementation roles. 

ERP Risk Advisors offers a free fraud risk assessment that includes identifying what employees through which roles can execute this fraud scheme.  Please contact us at info@epra.net for more information.  

Join the conversation on this topic at LinkedIn here or view a video on the topic on our YouTube page here.