From 2012 to 2013, the Association of Savings and Investment South Africa (ASISA) reported that fraudulent life insurance claims increased from R700 million to R800 million in a one-year period. Recent corruption cases have rocked South Africa, with the estimated damage stacking up into the billions. As much as we disapprove of corruption and fraud, they are often rife within organisations.

Considering the detrimental effects fraud and corruption have on a business, it is important to ask how organisations can prevent it from taking place within their walls. Thanks to the rapid development of ERP software, businesses can now take a stand against fraud and corruption. Here are the ways in which ERP can help:

1.    Deterrence

Opportunists are more likely to take advantage when there is a lack of watertight processes, procedures, and controls. It is easier to deceive management teams when there are no processes that hold employees accountable for their actions. The tighter the internal procedures, the more difficult it is for crooked employees to take advantage of organisational weaknesses. ERP software can help organisations set up impermeable practices that deter corruption and fraud.

2.    Mitigate Financial Fraud

Large organisations run the risk of opportunistic employees who can tamper with the accounting system, leaking large amounts of money into personal accounts. ERP software ensures legal and SARS compliance, which assists organisation in mitigating financial fraud, and makes it harder for unscrupulous employees to abuse the system.

3.    Automation

Time and time again, manual systems have proven soft targets for criminals and corrupt employees alike. Fully automated, ERP software ensures tighter control over valuable data. Say goodbye to the days of manual updates, misplaced or incorrectly filed information. ERP software also has password protection and authorisation capabilities, make it tougher for opportunists to tweak data.

4.    Authorisation

Gone are the days where a single person has multiple duties. ERP software ensures that all duties are separated, and employees must follow strict approval processes. Without approval, an employee’s hands are tied, limiting the chances of fraud.

5.    IoT

There is no denying the fact that The Internet of Things has ensured that we have the latest tools, software, analytics, and technology conveniently at our fingertips. From tracking stock movement to more complex sales trends, there is no lack of helpful resources that are user-friendly and easy to integrate. ERP software is the perfect way in which to safely and securely take advantage of all that the internet has to offer, without compromising on your organisations safety and security.

When it comes to preventing fraud and corruption, it is imperative to make the right decisions for your business. The best way in which to make informed decisions is to partner with an ERP service provider that can advise on the best possible solutions for your organisation.

Ccontact IQ Retail today to find out more about how we can help you!