What are the most common danger signs of exposure to computer related
fraud or abuse?
The most common indicators:
The ever increasing pace of technology means that the business systems inherent
in any organization today evolve quickly to a point which is beyond the understanding
of the management. Vast and complex business systems develop into monsters
where no single person has a clear view of what is or should be going on.
Developments often take place in a piecemeal fashion, with project groups or
programmers frequently changing.
Is there anyone left who knows what each part of the system should do?
Is someone exploiting the weakness in your system and your lack of understanding?
If you don’t understand what is going on inside your systems, you are not in control!
You are leaving yourself wide open to computer related fraud or abuse.
Cost cutting:
The constant commercial pressures and the need for economy often means that
essential controls are sacrificed. Inappropriate delegation of responsibility can lead to
situations where one person can put themselves in strong positions of power, e.g. does
the same person who authorizes payments to suppliers also sign the checks?
Essential systems documentation and procedures are often skipped in order to make
short term savings. This is a very common and highly misguided saving – what happens
if that essential ‘cog in the wheel’ breaks? (e.g. the only person that understands your
accounting system).