ABSTRACT
Catalyst event fraud showed how events leading up to the generation of a purchase order can be skewed to favorably benefit an inside person and outside entity regardless of whether there is an existing or potential relationship. Frauds against the purchase order itself can be varied and aided by both real and fictitious entities. Easier to perpetrate via wholly manual processes, too many organizations have discovered that the use of enterprise software does not prohibit this fraud from happening again and again. Organizations may source products from multiple suppliers who provide comparable goods. This is a good supplier risk management strategy and helps to keep prices competitively reasonable. Medical supplies, raw materials, electronic components, nuts and bolts, the list is nearly endless, as there are no shortages of suppliers competing for the same business. The fraudster issuing the purchase order to the fake service supplier may be the same person approving the fictitious service work product and fake supplier invoice.
