Daniel Draz, Principal of Fraud Solutions, discusses the future of fraud on BusinessInterviews.com
BusinessInterviews.com has featured an interview with Fraud Solutions principal Daniel Draz. This interview discusses Dan’s inspiration to create Fraud Solutions, the latest updates in fraud, and what fraud trends Dan sees on the horizon:
BusinessInterviews.com: What inspired you to launch your own business?
Daniel: The inspiration for launching Fraud Solutions was the unique opportunity to provide a more customized service level, competitive price point, and superior management product than currently being offered by larger consulting firms. More specifically, I found that businesses around the world have a real need for insightful, results driven, fraud risk management and consulting services that do not cost them upwards of $500,000 simply to start an engagement.
BusinessInterviews.com: What are some of the key ways that fraud has changed over the last decade?
Daniel: Fraud is definitely more digital these days and has evolved with technological advances. As technology grows, so does the amount of fraud being committed against it. Some people are fond of saying that the “Internet solves everything.” That’s certainly true. It has made conducting business easier in many respects. However, technology is clearly a “double edged sword,” as many of the same things that make the Internet great also expose businesses and individuals to significant risk just by having an Internet connection.
Another change involves the global landscape. Fraud has become significantly more global in nature. The nefarious individuals targeting your company often live in a world far, far away.
BusinessInterviews.com: Are there any types of businesses that are more prone to fraud than others? What can businesses do to reduce the impact and risk exposure to fraud?
Daniel: All businesses are prone to both internal and external fraud. They possess proprietary data, intellectual property (IP), customers’ personally identifiable information (PII), and revenues, which make them attractive targets to external thieves. Fraud can also come from the inside of any business as well. While fraud is definitely more global now, and the threat from global organized crime rings is significant, companies cannot ignore the internal fraud threat from employees. Employees pose a significant fraud risk. They understand the system, the controls, and technological processes in place to prevent it. A moderate sized embezzlement can easily result in $1,000,000 in losses.
As for fraud prevention, nothing a company does is completely foolproof. There are simply too many variables involved in doing business. However, there are many steps that businesses can take to reduce their fraud risk and exposure. Perhaps the most important step involves a thorough fraud risk assessment, which determines significant business vulnerabilities, prioritizes them, and creates appropriate risk mitigation strategies.
Visit BusinessInterviews.com to see Dan’s full interview.