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The Real Dimensions of Fraud Losses
In case of a fraud hit at an amount of USD 100.00, your operation and investigation costs along with fraudulent transaction amount are realized as about USD 185.00.

If we assume that your earning is USD 0.04 for each genuine USD transaction processed, the revenue should be equal to USD 4,625 for 100.00 USD fraud hit. USD 4,625 is your institution’s total revenue to cover total resource allocation for 100.00 USD fraud attack.

If the total fraud amount in a year is USD 100,000, the revenue to be made in order to eliminate such a fraud, operation and investigation loss should be USD 2,500,000, this figure reflects only the financial loss caused by fraudulent attempts. If precautions are not taken, information is not shared or reported to authorities, care is not given on legal and onsite operations, future activities are not monitored, a fraud attempt suffered by you might occur to another person in the sector in the near future. Your institution and sector will be spending more and more of scarce resources for recovering fraud losses and “ throwing “ money at fraud attacks. 
Do you know that fraudulent attempts cause subjective effects directly related to your business such as customer dissatisfaction, the erosion of reliability on the product, service, brand and trade mark. These are impossible to measure, and results in opportunity costs, inefficient resource deployment, increased investment costs, unnecessary tension and stress within the sector and have economical damages in micro and macro levels which are nearly impossible to eliminate.

Start managing your risk and maximizing your opportunity; aim for recovery not revenge. Your slogan can be “Citius-Altius-Fortius ( Faster, Higher, Stronger ) in your recovery plan with Fidelis.

Many institutions are unaware of existing or potential risk exposures, only a few of them are taking the necessary steps to manage both credit / debit and operational risks. It is the right time to ask yourself these important questions;

  • Can my institution afford to ignore the impact of fraud on our business?
  • Is my organization truly equipped to take on the serious criminals involved?
  • Does my organization have all the information to face the future threats with confidence?
  • Does my organization have a valid contingency plan to reduce fraud losses without negatively impacting our existing customer base?
  • How does my organization incorporate industry best practices into operations?
For the right answers to these questions contact Fidelis Consultants today.

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