1st Edition

Detecting and Reducing Supply Chain Fraud

By Norman A. Katz Copyright 2012
    258 Pages
    by Routledge

    258 Pages
    by Routledge

    Norman Katz has secured a top spot as one of the Top 50 Global Thought Leaders and Influencers on Supply Chain 2020.

    For most large organizations, the supply chain is a commercial advantage, enabling innovation, cost management and resilience. But the supply chain is open to fraud: the length and complexity of it creates opportunities for fraudsters to exploit phantom inventory, invent non-existent customers or suppliers, substitute one product for another, cheat on the quality...this list goes on. These frauds present a significant source of additional cost to the organization and expose it to a host of secondary risks: contract, compliance and reputation.

    Detecting and Reducing Supply Chain Fraud is a pragmatic guide to identifying and managing sources of risk. Norman A. Katz explains the main categories of fraud risk: what they are, what is their significance and how they are exploited by the fraudster. He also explores both the tactical and strategic approaches that you should adopt to help detect and reduce fraud, including detection techniques and the use of technology. He provides tactics for increasing your organization's resilience: increased transparency, appropriate governance, and engaging employees, customers and suppliers in more ethical work practices.

    If you are responsible for your organization's supply chain, or perhaps involved in audit, compliance or risk management, start using Detecting and Reducing Supply Chain Fraud and look more closely at every aspect of your supply chain, both internal and external. The savings made in fraud reduction, the increased resilience you will give all of your operations and the improved reputation that your business will enjoy, as a contract partner or amongst stakeholders, will repay your investment a hundred-fold.

    Preface; Reviews for Detecting and Reducing Supply Chain Fraud; Introduction; Part 1 Understanding Supply Chain Fraud; Chapter 1 What is the Supply Chain?; Chapter 2 What is Fraud?; Part 2 Detecting Supply Chain Fraud; Chapter 3 Catalyst Event Frauds; Chapter 4 Purchase Order Frauds; Chapter 5 Distribution, Shipping, and Receiving Frauds; Chapter 6 Quality Assurance Frauds; Chapter 7 Inventory Asset and Fixed Asset Frauds; Chapter 8 Manufacturing Frauds; Chapter 9 Invoice and Sales Commission Frauds; Chapter 10 Return Frauds; Chapter 11 Detection Do’s and Don’ts; Chapter 12 Technology Methodology; Chapter 13 Due Diligence in Detection; Chapter 14 Fraud Ramifications; Chapter 15 Reducing Fraud through Transparency; Part 3 Reducing Supply Chain Fraud; Chapter 16 Beyond the Hack; Chapter 17 Governance and Fraud; Chapter 18 Trends in Ethics and Integrity; Chapter 19 Supply Chain Information Integrity; Part 4 Supply Chain Vendor Compliance; Chapter 20 Collaboration Versus Conspiracy; Part 5 Fraud Detection: Past, Present, Future; Chapter 21 Predicting the Future of Supply Chain Fraud;


    Norman A. Katz is the founder of Katzscan Inc., a specialized consultancy concerned with supply chain operations and technologies, compliance and fraud. He holds several professional anti-fraud certifications and regularly speaks on the conference circuit and has guest lectured at a number of North American universities.

    'Auditors seek to confirm that transactions are authorized, accurate and complete. By definition all fraud is non-authorized. Norman Katz shows, via multiple stories and examples, those areas where authorization controls fail - from their design - and how to create robust authentication processes that include prevention and detection of control failure. A must read for Board members.' Frederick D. Cox, Vice President Information Security and Privacy, Seacoast National Bank and CEO, FDC Associates, LLC ’...Detecting and Reducing Supply Chain Fraud is a useful overview of the field, which will be of interest both to general managers charged with implementing a fraud risk management policy, as well as to audit practitioners' seeking guidance from real world case studies... Mr Katz’ book is a useful guide to visualising these critical absences, and provides some practical advice on how to integrate this thinking into an effective fraud risk management programme.’ Anti-Fraud Network 'Norm Katz's "eye opening" examination of fraud is required reading for anyone involved with supply chain operations. Easy to read and chock full of practical advice, the fraud detection and reduction methods will increase the efficiency and effectiveness of supply chain governance, risk management and compliance processes. This is a significant contribution to the field of operational excellence!' Doug Ross, President and founder of Principle Dynamics