Manufacturing is an industry which suffers high volumes of both fraud and cyber-attacks. According to the Global Fraud and Risk Report 2019/20 from Kroll, this industry was most at risk facing a variety of internal and external fraud threats.
Fighting fraud for the Manufacturing sector
Manufacturing can have higher losses to fraud compared to other industries which makes it crucial for businesses in the sector to have a robust fraud prevention plan in place.
Understanding your organisation’s risk to fraud will help prevent and also identify fraud incidents early which improves the chances of recovering funds and reducing the impact on a company’s reputation.
Managing a manufacturing business is fast paced and highly pressured, it is often complicated by complex supply chains and short timescales which all add to the challenges to combat fraud. That is where Tenet can help. We know, especially for SMEs in this sector, how difficult it can be to find time to implement fraud controls or to know what to do, if for example, you suspect an employee has diverted money or assets away from your business.
Other threats are now more serious in such a competitive age. In a Global Fraud and Risk Report, Kroll recognised IP theft in the manufacturing sector to be significantly more likely as well as having the highest incidence of leaks of internal information. These types of attacks are related to data loss (the most common targets being customer records, IP, trade secrets, R&D and employee records) or theft of IP by way of an employee leaking data can have significant implications.