Question

Check My Work (1 remaining) Fraud detection is an important element of minimizing losses from fraud, and it is important that frauds be detected as early as possible. Early detection is important because, in most cases, losses are greater at the beginning of a fraud and decrease significantly over time. a. True b. False

Answer 1

True. The early detection of fraud avoids greater loss.

Explanation:

The early detection of fraud needs to be done for the following reason:

• Fraud will continue if not found earlier and thus leads to greater loss
• The fraud team is not widen before huge loss happens
• Easy to recover
• Possibility of finding the loop holes even if it is from external sources
• Detects weakness in the internal control and eradicate and make the system secure
• Avoid huge loss and threats
• To gain profits
• To keep up the name of the organization
• To bring business and to retain customers