Identifying & Mitigating Fraud: Risks in a Remote Working Environment
Remote working created an environment that’s ripe for fraud, and it’s important for construction companies to be aware of the risks. Cybersecurity, data theft, asset misappropriation, and fraudulent financial reporting are some major concerns right now. This article explores these areas and what contractors can do to defend themselves and prevent fraud from occurring. Here’s an excerpt from the article:
"The effects of the COVID-19 pandemic on business operations have been devastating and far reaching. Companies have been forced to lay off thousands of employees, furlough others for an indefinite period of time, freeze compensation, and cut pay. There is great uncertainty on when things will return to normal—and what that will even look like. While the direct financial impact on organizations and the personal financial impact on employees is obvious, a large percentage of companies have had to adjust to a workforce that has migrated to a remote working environment. As the challenges of operating a remote workforce are great, companies must also ensure that assets are protected from fraudsters seeking to take advantage of potential weakened internal control structures caused by a remote workforce."
BKD is a Principal Partner of the Construction Financial Management Association (CFMA). This resource first appeared in its magazine, CFMA Building Profits, and was posted on bkd.com with permission. BKD Trusted Advisors™ are regular contributors to this publication.