3 Types of Financial Fraud In Business

Business fraud can have a monumental impact on an organization. There are many types of fraud that go by different names, such as financial statement fraud, bribery and corruption and asset misappropriation. It is often the case that fraud instigated by an employee will involve more than one type of fraud. Also, business fraud is not always easy to detect because it does not always show up in a company’s official accounts system. In general, the most typical way to detect this type of fraud is by receiving a tip from an employee, a customer, or an outside vendor.

Here is an overview of the different financial fraud in business:

Asset misappropriation

Asset misappropriation is the type of fraud that involves a member of staff who uses their position to take from their employers. This fraud is often committed by those trusted to manage the interests and assets of a company, which can include board members, employees or directors.

This type of fraud activity can include theft of company formulas, patents, or sensitive data, theft of credit notes or vouchers, inventory theft, theft of money or check forgery.

Any company that suffers from asset misappropriation will experience cash flow issues in some form. Plus, it can also have a negative impact on staff morale and the company’s reputation. It is believed that over 90% of business fraud is related to asset misappropriation which makes it by far the most common issue. On average, the lost from this type of fraud is in the region of $150,000 per case.

Bribery and corruption

Bribery and corruption is the next most common issue related to fraud in a business environment. Even though this type of fraud is less common than asset misappropriation, the average cost of a bribery scheme is significantly higher, and likely to exceed over half a million dollars per case.

The type of schemes involved in this area are quite broad and can include substitution of inferior goods, manipulation of contracts, bribes to influence decision-making, shell company schemes and kickbacks.

Financial statement fraud

Financial statement fraud takes place less frequently, but is almost certainly to be the most experience per case. On average, this type of fraud can lead to a company losing up to $2 million per case. This fraud involves an entity or individual falsifying earnings or income statements in an attempt to make a financial gain for them.

This type of fraud can include manipulating a company’s records in relation to more favorable loan terms, an improvement in year-end bonuses, or influencing the stock price.

On the Other Side of the Door

“If opportunity doesn’t knock, build a door.” – Milton Berle

Not too long ago, I wrote an article about why you shouldn’t start a nonprofit. My point in the piece was that too often, people have great intentions for social good in their community, but there are broader implications for those who want to start a charity to consider.

Sure enough, a couple of days ago I received a call from someone asking my thoughts about starting a nonprofit. However, this article isn’t about the pros and cons of establishing that type of business.

It’s about knowing what’s on the other side of the door.

What do I mean by that?

As I listened to the call, this person told me that he was considering leaving his job as a senior executive in business, but he had several concerns. He talked about his worries that he had the expertise to do what he wanted to do. He also spoke about his fears that he would be leaving his wife in a high-pressure position to be the primary breadwinner in the family. He would not earn the money he was making now, and he didn’t even know if this venture would be successful. Indeed, he would end up earning significantly less money than he was currently making.

Ultimately, this person’s decision was his decision, and I never gave him an answer to his question of what he should do. It wasn’t for me to decide. That was a decision between him and his wife.

But, I did ask him to keep a thought in his mind.

What’s Behind the Door?

I asked him to think about what was on the other side of the door if he moved into the nonprofit sector, and then I asked him to consider what was on the other side of another door if he stayed in place.

The exercise is one I’ve used, and if you haven’t used it for yourself or in your team management, it might be something you consider.

When you are at an inflection point in your life, and you’re facing a significant decision, looking at what you believe will be behind the door is a great way to gain understanding. It helps you project into the future. The more vivid the picture, the better the exercise is in helping you make a decision.

Gaining Clarity

The reality is that nothing is perfect. Everything comes with its opportunities and challenges. If you think that any path is the absolute ideal and will make your world supremely better, that’s not the way the world works. Everything takes time, and everything exacts a sacrifice. No path, no journey comes without a challenge.

However, by visualizing what’s behind the door and seeing what your world could look like, including considering the challenges that will likely come up along the way, will help you understand what door you want to open. It will help you get the clarity you need to make the best decision for you.

4 Signs That Your In-House Ticketing System Needs to Be Refurbished

You must have invested years of expense and time in its maintenance if you have built your in-house ticketing system right from scratch. But there may be chances that your system still is not meeting the needs.

Sometimes, to keep the event system up-to-date, you just need to invest more time and money. But most of the time your team is short of resources to pour into system maintenance let alone the technological improvements that are required to make your site advanced and competitive.

Here are some generic signs that tell that your ticketing system needs an overhaul.

  • Times When You Can’t Connect to Other Top-notch Solutions – When it comes to putting up successful events, a ticketing system is just one piece of the puzzle. But you should always keep the big picture in mind and that includes your daily activity to operate impeccably. Under ideal conditions, the ticketing system that you device should be able to link up with your check-in system, your event app, promotional channels and other services like Survey Monkey and Google Analytics. This way you will get to know more about your ticket buyers and page visitors. You have to think of an upgrade if your system is not compatible with other technological solutions that you rely on.
  • You Cannot Access the Data That You Need – Everyone knows that you are selling tickets but do you know anything about the people who are purchasing the tickets. If you cannot understand who your attendees are, how they are discovering your event and when they are purchasing the tickets, then you are losing valuable insights that can improve your ticket sales in a drastic manner. If your ticketing system is not able to collect data of your attendees then it is time to dig deeper. This way you won’t be able to compete or expand your business if you do not have a system that collects data in real-time and is easy-to-use.
  • Your Ticketing System Keeps Breaking – One of the most obvious signs that tells that you need to switch and upgrade to a new system is when you are unable to run it. If your system is not running smoothly especially at the time of high-demand on-sales then it is natural that the potential attendees will be frustrated and they will show it on social media.
  • Your Conversion Rates Are Going Down – There are lots of reasons that the percentage of page visitors who actually complete the registration or the ticket-buying process may decline. But a poor ticketing system really hurts the rate of conversion and it affects the system in the worst way possible. Every additional step that your attendees have to take for booking the ticket, each time the conversion rates get affected by 10% per additional step. In case, your in-house ticketing system calls for people to create an account, doesn’t work smoothly or look good, it is time to switch or upgrade without any question.

The above are some of the tell-tale signs that your in-house ticketing system needs to be overhauled. The experienced and experiential event agency actually follows these steps religiously prior to hosting any event.

Strategies Most Marketers Misunderstood In Influencer Marketing

Influencer Marketing has become one of the most powerful tools in a marketing teams’ toolkits today. It is not expected to disappear anytime soon with most of the majority brands using this effective strategy. Research shows that is probably going to continue throughout the years, why? People no longer trust the brands. A lot of people are no longer influenced by these traditional marketing techniques and they are now influenced by those people whom they trust and respect. On the other hand, there are still numerous brands who still misunderstand what is “influencer marketing,” thus making it an effective tool. Truth be told, 74% of purchases are made by word-of-mouth recommendations, and influencer marketing is one of the most effective ways to drive word-of-mouth sales. It is no wonder that marketers are increasingly embracing influencer branding and marketing strategies to achieve their business’ goals and objectives.

This article outlines the most common influencer marketing mistakes to steer clear in order to be successful and avoid overlooked cost.

Fail to understand the audience

Your audience is your critic, if they want your product, they will be your customers. You will never be able to create a long-term and effective influencer marketing strategy if you don’t know your audience/customer. Marketers who have not yet flourished a genuine marketing personality are suggested to place their programs on hold until they understand who are their customers and what are their interests in order to achieve and interaction with the brand. It is to be noted that marketers need to understand purchasing habits, demographic information, pinpoints and psychographic information in order to create a marketing persona and conventionally, all of these statistics can be gathered through customers’ reviews.

Using Influencer Marketing in the wrong influencers/channel

Your marketing would not work unless you are working with the right influencer for your campaign. Influencer marketing is not identically effective across all channel, niche, and the target audience. If you are promoting a beauty product, much recommended working with YouTube Influencers since it is much effective in videos than a plain picture of your product and a post on Facebook, Instagram or Twitter.

Expecting results in a short period of time

If you have just started doing the influencer marketing, you cannot just expect a good result in just one snap. In some cases, for a powerful influencer, marketing campaigns can produce results overnight. But mostly and especially for brands and companies that are not using E-commerce, Influencer Marketing should take time to effect. Trust and patience are advisable. It is to be noted that effective influencer campaigns help the improvement of brand awareness. When a candidate is aware of your brand, they will still need to undergo the process of your marketing funnel, the consideration and decision making stages before performing the purchase. So yes, it takes time to get the results.

Forgot to use the Analytics

Using analytics is one of the most accurate ways to get updated and determine whether your influencer marketing is effective or sat to say, ineffective. Monitoring and measuring the performance of your campaign is required in all types of platforms, from there, you will be able to know which part of your marketing campaign needs to be improved. You can find lots of platforms online that can help you measure your campaign insights and progress.

Failure in conveying expectations with your influencers

Upon working with influencers, it is much important to construct your expectations clearly. You should give your influencers a summary that includes the goals and objectives of your campaign. Collecting and including the marketing personal you have collected will help your influencers to become more successful. You may also want to include analytics information that you find valuable when marketing to the target audience.

Focused on the wrong KPIs

Influencer marketing is a powerful marketing method, but everything in this world has its own limits. Marketers need to ensure that they are using influencer marketing the right way. It is advised to focus on the KPIs which fits your brand, product, and activity, don’t just focus on getting sales, start being genuine! An influencer marketing campaign designed to influence KPIs related to bottom-of-the-funnel behaviors is not generally perfect.

Avoided this strategy because you failed “once”

Just because you failed once in this marketing strategy doesn’t mean you should give up. Marketers don’t just quit marketing because one of their marketing campaigns was not successful. Instead of quitting, if you have failed, use that failure to improve your marketing. You must understand why did the campaign fail so that you could implement better strategies and ideas the next time you set an influencer marketing campaign. Remember: Failures are one of the challenges you will face upon entering Influencer Marketing and learning from it is the key to success.

Neglected the call to action

Before you launch your campaign, make sure you have considered this question: Where should my audience click to take action upon engaging with my I.M. content?

If you planned to drive traffic to your website using I.M, make sure to construct a webpage that will allow your visitors to utilize the next action. Importantly, make sure to test the constructed web page if it is perfectly working and responsive both on mobile and PCs. Associating the call to action with an I.M. campaign and securing that it is optimized for your target are keys to success with I.M.

Chosen an inappropriate agency to manage influencer relationship

Influencer marketing has become affected and is on top of the line. Marketing agencies are also crawling and offer I.M. services. But guess what, not all of these agencies have valuable experience with I.M. strategies, I mean they do have a bit, but not on its deep understanding. Therefore, they can not make your marketing successful. Be sure to choose an agency that has experience working with influencer marketing methods that are related to your business.

Misapprehension of Influencer Marketing process

If you wanted to start influencer marketing, make sure to learn what is the process and activities involve on this strategy. This will guide you to your success.