Bucharest, November XX, 2021 - With the onset of the pandemic in Romania, companies have sought to take swift measures to adapt to the new reality, to ensure business continuity in home and hybrid working conditions, including increasing the physical security measures of the locations where they operate.

Thus, approximately 401TPTP3T of companies in Romania have improved or are in the process of improving their internal fraud protection systems, as 1 in 2 organizations, regardless of sector, has reported or accused of increased cases of internal fraud since the beginning of the pandemic, according to an analysis by Corporate Intelligence Agency, a risk management company dedicated to the business environment.

With the imposition of working from home as the norm in many companies in Romania, crime has increased by around 401TPTP3T in fraud cases overall. Some of these are insider crimes that can be detected by the employer itself, but in parallel with the increase in fraud cases, there is also a commensurate weakening of protection mechanisms - in particular, due to the restrictions imposed in the pandemic and the restrictions on effective investigation of these cases.

The most common frauds today are data theft (employees leave with databases, correspondence and technology) and time theft (employees who don't physically go to the office are logged into company systems but are doing other activities other than their work tasks). But the rise in insider fraud is not just employee fraud, but also hackers speculating on transitional periods in which companies are in transition and making them vulnerable.

"In the Romanian business environment, with small exceptions, there is a lack of prevention culture, as companies have a reactive behavior. It is only when something happens that organizations become preoccupied with investing in processes / procedures and systems that allow them to continue their activities. To continue to thrive in such times, leaders in companies need to adapt their business and crisis mindset and invest in systems to prevent, control and prepare employees to adapt to exceptional working conditions. And Work From Home (WFH) is a clear case of asymmetric threat to the integrity of business operations"says Gabriel Zgunea, CEO Corporate Intelligence Agency.

What companies need to do to reduce vulnerabilities

In order to prevent and detect fraud, companies need to invest first and foremost in specialized staff with skills in improving compliance and data security systems and IT systems. A minimum increase of around 301TPTP3T in the budget dedicated to this aspect may be sufficient to limit and eliminate internal fraud in organizations.

Risk prevention services (vulnerability or penetration testing) are available to companies to specifically pinpoint areas that are particularly at risk and where internal fraud is expected to increase, depending on the specifics of the company and the industry in which it operates.

At a general level, however, in order to limit vulnerabilities, companies need to apply a number of preventive measures, such as investing in anti-fraud and cybersecurity systems, securing systems, networks and employee work devices, and implementing strict protocols, understood and adopted by teams, for WFH and hybrid WFH. Periodic scrutiny by the employer or when fraud is suspected should be assumed as a healthy and natural procedure in the organization. "It's a very risky approach for a company not to exercise the control function for reasons of employee comfort or organizational culture, if there are sufficient signs that indicate possible fraud"says Dan Rusu, Senior Partner, Corporate Intelligence Agency.

Since the beginning of the pandemic, there have been companies, especially multinationals, that already had BCP (Business Continuity Plan) procedures in place and had a smooth transition to WFH and hybrid systems, but most were completely surprised by the implications derived from the general lockdown state. Organizations that invest in prevention, both in systems and in employee training, will benefit from a high degree of flexibility in adapting safely to the new realities of the world of work.

About Corporate Intelligence Agency

Corporate Intelligence Agency is a risk management company dedicated exclusively to the business environment, specialized in identifying potential vulnerabilities, risks or business opportunities of the companies that use its services.

Corporate Intelligence Agency offers premium solutions in Applied Intelligence, Competitive Intelligence and Risk Management, using the latest tools and technologies, along with the dynamism, creativity, and especially the very high level of expertise in the intelligence field of the experts in our team.

Corporate Intelligence Agency services are addressed to all companies and corporations that understand the importance of using professionals to generate reliable information that can inform decision-making processes, providing knowledge on socio-political phenomena or conjunctures, markets or situations of interest, as well as reducing risks or vulnerabilities in areas that may affect the company's economic and reputational interests.