Fraud is rampant in manufacturing because manufacturing environments present unique opportunities for employees, contractors, vendors, or cyber hackers alike to take advantage of unsuspecting companies. This makes them vulnerable to significant financial loss and reputational risk.
Recognizing where manufacturing businesses may be at risk for possible fraudulent activity is a crucial part of the risk management process.
How manufacturing leaders can be proactive in detecting and preventing fraudulent activities by:
- Understanding what constitutes as fraud
- Recognizing how fraud impacts manufacturers
- Detecting the red flags or indicators that point to fraud