Dear Customer

Recent remarks made by a program facilitator at the 15th Annual ACFE Africa Conference were:

“What is the cost of fraud prevention?
“You will only know once you are hit with it.”

Over the past 12 years, we have witnessed many businesses and organizations either fail to implement systematic fraud prevention systems or operate without regularly reviewing the programs they have in place. There are four primary reasons why taking precautions against fraud is important.

Fraud is common.

According to the findings of a study conducted by the Association of Certified Fraud Examiners (ACFE), “the typical organization loses 5% of sales each year to fraud.” I believe that every reader would agree with me that this statement has become the norm in our society and that every citizen of South Africa can relate to some form of a fraudulent scheme, whether it occurred in their professional environment or private capacity.

Fraud can result in devastating financial losses.

In the age of digital technology, seemingly insurmountable problems might arise out of nowhere. The repercussions can hurt finances, reputation, customer loyalty, and brand-related issues. According to something that former Amazon CEO Jeff Bezos said at one point, “A brand for a company is like a reputation for a person.” You build a reputation for yourself by demonstrating that you can succeed at challenging tasks. When weighed against the cost of a catastrophic failure, the investment required in a plan and program to combat fraud is negligible.

In today’s ultra-competitive business environment, effective cost management is essential.

Companies that are successful in lowering their risk of fraud enjoy a significant competitive advantage over rival businesses that fail to take this step.

Your customers will have more faith in your business if you take measures to prevent fraud.

Your investors, partners, and auditors will have more faith in your capacity to oversee the future of your company if you have a fraud prevention strategy that is effective. If you can demonstrate that you are taking measures, both internally and externally, to cut down on or prevent fraud, you will be seen as a more desirable investment, business partner, insurance risk, and supplier. Now, let’s circle back to the initial question: what exactly is the value of preventing fraud? The stakes are very high, especially if you have the mindset that it won’t happen to you. XTND is serious about eradicating fraud, and we understand the importance of prevention. As we recently celebrated our 12th birthday, rest assured we will persevere in our ongoing battle to stop fraud.

Warm regards
Servaas du Plessis

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