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 Almost 80 Pct Fraud Cases Are Not Reported
Every Year: ACFE
KUALA LUMPUR, Jan 14 (Bernama) -- About
80 percent of the fraud cases are not reported every
year according to president of the Malaysian Chapter of
the Association of Certified Fraud Examiners president
(ACFE), Akhbar Satar.
"The reasons individuals
and corporations do not report are because they are
afraid to get involved and they themselves are
involved," he said at the opening of the Insurance and
Takaful Fraud Conference here today.
The
conference is organised by Insurance Services Malaysia
Bhd (ISM) and ACFE.
Akhbar said education would
be the key in the fight against fraud.
"Only when
they are aware of the different fraudulent schemes in
the market will they be able to defend against
them.
"If you are not trained to look for fraud,
you will never find it," he said.
He said the
conference was in line with the association's efforts to
create a greater awareness on fraud.
"Insurance
and takaful are pervasive in every aspect of business
and personal life.
"Health, travel, property,
cargo and vehicles are just some examples where
insurance and takaful play an enabling role for
customers and businesses to operate.
"There is
therefore both a social and moral need for the industry
to be pro-active in preventing fraud in the industry,"
Akhbar said.
He said many industries were
reluctant to openly address the issue of fraud,
resulting in lack of public knowledge on the types and
dangers of fraud.
"While businesses suffer losses
due to fraud, ultimately it is consumers that have to
bear the burden of fraud losses through higher costs,"
he said.
Meanwhile, ISM chief executive officer,
Carl Rajendram. said there were two general categories
of insurance and takaful fraud -- soft and hard
fraud.
He said the soft fraud was usually
perpetuated by ordinary consumers during an insurance
claim.
"The fraud includes inflating or
exaggerating a genuine claim, concealing information at
the time of claim and claiming for additional losses
that might not be covered under the insurance or takaful
contract.
He said hard fraud like staging motor
accidents, arson and murder involved serious crimes and
was usually committed by organised crime
syndicates.
-- BERNAMA |
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MIDDAY,
TUESDAY, SEPT 23
| US
|
3.3990/4040 |
| S'pore |
2.4091/4147 |
| 100
Yen |
3.2279/2339 |
| Sterling |
6.2994/3103 |
| Euro |
5.0203/0291 |
| Source: Bank Negara
Malaysia | | |
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