Brands and Retailers Will Discover More Fraud Schemes When Workers Return To OfficesAnchin in the NewsMarch 8, 2021
Anchin's Consumer Products Group Leader Marc Federbush spoke about fraud in the pandemic environment:
Marc Federbush, Practice Leader of the Consumer Products Group at accounting firm Anchin, Block & Anchin LLP, said, “This environment is a lot more susceptible to problems. Bad guys are working hard at it now.” If [he's] right, then you’d think managers would be extra diligent in monitoring the people they would suspect most. But that’s not the right strategy according to Federbush who said, “Most frauds are committed by the most trusted employees in the company.”
Federbush of Anchin says, “many frauds start small and when they realize they're getting away with it, it becomes a larger number.” Motivations for that kind of fraud are manifold, but maintaining financial ratios to stay within the terms of bank debt covenants is often key.
Federbush of Anchin says what matters is, “the tone at the top ... has to be committed to integrity and ethics” and without it no controls will work. There needs to be, he said, “a structure of authority and accountability.”
Read the complete article on Forbes.com.