I was at a fraud seminar last week and the most amazing thing I learned was that most organizations that discovered fraud chose not to prosecute. There were many reasons given for this reluctance. Some organizations were afraid of of the damage to their public image. Others stated the cost involved in prosecuting would exceed the amount stolen. Has stealing become acceptable behavior?
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One Comment
Unfortunately, it might be that fraud (especially smaller dollar amounts) is considered just a cost of business these days. It seems strange, but practical.
In addition to the reasons above for not taking action, the stolen funds are often converted into illiquid assets that would be costly to convert back in recovery.
In this economy, organizations will most likely experience increasing amounts of fraud/theft. Interesting times, but not the fun type.