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When Fraud Strikes: The Hidden Cost of Document Tampering

WHEN FRAUD STRIKES THE HIDDEN COST OF DOCUMENT TAMPERING Learn about the cost of corporate fraud and how to prevent fraud with tamper-evident digital signatures. $5M The SEC fined Wells Fargo $5 million in a recent document tampering case. The average organization loses 5% of its revenue to fraud each year 5% Risk from Every Angle What does document tampering cost? Depending on your situation, you could face: $$ SSN DOB Costly Court Battles Regulatory Penalties Document Fraud Regulatory bodies in various industries impose steep fines for fraud. The median contract Document fraud dispute case costs could ruin business deals and tarnish $91,000 your reputation. Banking & Financial Services Government & Public Administration Top 5 Industries at Risk for Fraud Education Manufacturing Healthcare Cost of Fraud by Business Size < 100 $154,000 100 - 999 $128,000 1,000 - 9,999 $100,000 so $40,000 $80,000 $120,000 $160,000 $200,000 MEDIAN LOSS Small businesses are not immune to fraud risks Behavioral Red Flags Certain behaviors are common among fraudsters before their fraud is discovered. At least one "red flag" behavior was seen in 92% of cases. 44% 33% Living Beyond Their Means Financial Difficulties 22% 21% 18% Unusually Close Relationships with Vendors/ Customers Unwilling to Share Control of Displays a "Wheeler Dealer" Attitude Responsibilities Loss by Duration of Fraud $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 <7 months 13-18 23-36 49-60 61+ months months months months months months months DURATION OF SCHEME Early detection of fraud is key to minimizing losses TAMPER | HOW IT WORKS PROTECTION 11 Digital signature services take a snapshot of your document when you upload it into their system. 00111010100010 1010001 1000101 111 100 Lo010 011 The software keeps taking snapshots through the entire process. 10 Detecting Tampering Open the completed document in any PDF reader. The PDF reader automatically tests authenticity by comparing the document you're looking at to the last approved snapshot. 10 100 011 01000 If everything is the same, you'll see That's your signal that the document is a green checkmark icon at the top of the screen. tamper free! 110 010100 10 If something has been changed, you'll see a red X or a yellow exclamation point. 1010 01011 While it's impossible to completely prevent fraud, tamper-evident digital signature technology can help you detect fraud early. This will help you minimize financial losses, harm to your reputation and regulatory fines. Learn more at www.signix.com. SOURCES http://www.acfe.com/acfe-in-the-news.aspx http://www.courtstatistics.org/~/media/Microsites/Files/ CSP/DATA%20PDF/CSPH_online2.ashx http://www.courtstatistics.org//media/Microsites/Files/ CSP/DATA%20PDF/CSPH_online2.ashx http://www.acfe.com/rttn/docs/2014-report-to-nations.pdf BROUGHT TO YOU BY SIGNIX NUMBER OF EMPLOYEES of MEDIAN LOSS

When Fraud Strikes: The Hidden Cost of Document Tampering

shared by emaxie on Nov 13

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When I hear about data breaches, it’s easy to imagine a hacker sitting in a dark room with a pile of Red Bull cans and a keyboard. It’s easy to be ambivalent to that type of threat. Of course you�... ��re afraid of being hacked, but you’re doing what you can to protect your company. But have you considered the threats you face from the people who work in the offices next to yours? A recent study found that insider threats make up about 23% of all cybercrime incidents. In fact, companies around the world lose $2.9 trillion to employee fraud each year, with $40 billion of just in the United States. The actual theft of money is only a small piece of the cost of fraud. Other costs include: Costly Court Battles—The median contract dispute case costs $91,000. Public Opinion—Fraud can ruin business deals and tarnish your reputation. Regulatory Penalties—Regulatory bodies in various industries impose steep fines for fraud. In fact, earlier this year, the SEC fined Wells Fargo $5 million in a document tampering case. The news is even worse for small business owners. Businesses with less than 100 employees suffered more costly fraud attempts than their larger counterparts. The average fraud scheme at a small business costs $154,00, compared to $100,000 for businesses with more than 1,000 employees. Tamper-evident technology is one way to protect your company from fraud. This technology uses advanced cryptography to alert you if one of your documents has been tampered with. Here’s how it works: The digital signature service takes a snapshot of your document when you upload it into their system. The software keeps taking snapshots through the entire process. Open the completed document in any PDF reader to find out if it’s been tampered with. The PDF reader automatically tests authenticity by comparing the document you’re looking at to the last approved snapshot. If everything is the same, you’ll see a green checkmark icon at the top of the screen. That’s your signal that the document is tamper-free. If something has been changed, you’ll see a red X or a yellow exclamation point. While it’s impossible to prevent fraud 100% of the time, using tamper-evident digital signature technology can help you detect fraud early. This will help you reduce your financial risk and can protect you from regulatory fines.

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SIGNiX

Designer

Emily Maxie